Siddharth Satish Katariya Vs Central Bank of India Limited (NCLAT Delhi)
Summary: NCLAT Delhi allowed the appeal of Siddharth Satish Katariya, ex-director of Superfine Metals Pvt. Ltd., and set aside the NCLT Mumbai Bench-II order dated 16.07.2026 admitting Central Bank of India’s Section 7 application. The central controversy was whether defaults under the Cash Credit and Ad-Hoc Cash Credit facilities occurred before 25.03.2020 or during the permanently protected period under Section 10A of the Insolvency and Bankruptcy Code, 2016.
The Bank’s original Form-1 and NeSL material recorded 29.11.2020 as the date of default/NPA. After the Corporate Debtor raised the Section 10A objection, the Bank amended the application and pleaded 10.03.2020 as the Cash Credit default date and 24.03.2020 as the Ad-Hoc facility default date.
For the Cash Credit facility, the Bank relied on interest debited on 29.02.2020 and its contention that the amount became payable on 10.03.2020. NCLAT examined the RBI COVID-19 regulatory package, the Bank’s treatment of the account, the FITL arrangement, the contractual terms and the meaning of “default” under Section 3(12). It held that the contractual terms remained relevant in determining when the amount became “due and payable” and found the Bank’s pleaded Cash Credit default date of 10.03.2020 unsustainable.
