# In the matter of Andhra Pradesh State Financial Corporation Vs. Kalptaru Steel Rolling Mills Ltd. & Anr.,Company Appeal (AT) (Insolvency) No. 584 of 2020

> NCLAT judgment dated 2022-12-13. Citation: TCN-2022-NCLAT-00033. The case involves two appeals filed by Andhra Pradesh State Financial Corporation (APSFC)…

- **Court:** NCLAT
- **Order date:** 13 Dec 2022
- **Citation:** TCN-2022-NCLAT-00033
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/andhra-pradesh-state-financial-corporation-vs-kalptaru-steel-rolling-mills-ltd-a-48e09b84

## Summary

### Background

The case involves two appeals filed by Andhra Pradesh State Financial Corporation (APSFC) challenging orders passed by the Adjudicating Authority (National Company Law Tribunal, Principal Bench, New Delhi). The first order, dated 14.02.2020, approved the Resolution Plan of the Corporate Debtor, Kalptaru Steel Rolling Mills Ltd. The second order, dated 19.11.2020, allowed an application (I.A. No.2123 (PB)/2019) filed by the Resolution Professionals seeking direction to APSFC for releasing original title deeds of the property mortgaged with APSFC by the Corporate Debtor.

## Facts

Andhra Pradesh State Financial Corporation (APSFC) sanctioned a Term Loan of Rs.7.70 Crores on 2008-01-11 and Additional Term Loan of Rs.12.30 Crore on 2009-01-27 to Kalptaru Steel Rolling Mills Ltd. The loan was secured by the mortgage and hypothecation of the land, plant, and machinery. On 2013-06-17, APSFC took possession of the mortgaged property due to default by the Corporate Debtor. APSFC attempted to sell the mortgaged assets but could not complete the sale. Andhra Bank filed an application under Section 7 of the IBC against the Corporate Debtor, which was admitted on 2018-08-14. Andhra Bank and APSFC were financial creditors with claims of Rs.90,33,20,878/- and Rs.46,26,59,125/- respectively. Publication was made calling for Expression of Interest on

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## Issues and analysis

### Issue 1: Whether the application under Section 7 filed …

**Ratio:** When the challenge to the Section 7 application filed by the Appellant on all grounds has

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**Reasoning:** The Hon'ble Supreme Court dismissed the Special Leave Petition filed by the Appellant

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**Interpretation:** The principle is that once a matter has been decided by a higher court, the

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**Application:** The Appellant's challenge to the Section 7 application on the ground of

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Andhra Pradesh…
- **Respondents:** Kalptaru Steel…
- **Advocates:** Gautam…; Anoop Prakash…; +5 more

## Timeline

- **2008-01-11 — Term Loan San…**: Andhra Pradesh State Financial Corporation sanctioned a Term Loan of Rs.7.70 Crores to…
- **2009-01-27 — Additional Term Loan…**: Andhra Pradesh State Financial Corporation sanctioned an Additional Term Loan of Rs.12.30…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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