# In the matter of ATC Telecom Infrastructure Pvt. Ltd. Vs. State Bank of India & Anr. CA (AT) No. 381-2018

> NCLAT judgment dated 2018-07-19. Citation: TCN-2018-NCLAT-00200. The Appellant, an Operational Creditor, challenged the admission of an application by the…

- **Court:** NCLAT
- **Order date:** 19 Jul 2018
- **Citation:** TCN-2018-NCLAT-00200
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/atc-telecom-infrastructure-pvt-ltd-vs-state-bank-of-india-anr-ca-7e6ec8f8

## Summary

### Background

The Appellant, an Operational Creditor, challenged the admission of an application by the State Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, which initiated the Corporate Insolvency Resolution Process against Videocon Telecommunications Ltd. The Appellant claimed the application by State Bank of India was incomplete and filed in collusion with the Corporate Debtor.

## Facts

The Appellant, identified as an Operational Creditor, filed an appeal challenging the admission of an application by the State Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016. This application initiated the Corporate Insolvency Resolution Process against Videocon Telecommunications Ltd., the Corporate Debtor. The Appellant argued that the State Bank of India's application was incomplete and filed in collusion with the Corporate Debtor. The court questioned the Appellant's locus standi to challenge the application under Section 7. The Appellant then sought to withdraw the appeal with liberty to move before the Adjudicating Authority.

## Issues and analysis

### Issue 1: Whether an Operational Creditor has the locus standi to challenge an application under Section 7 of …

**Ratio:** Shareholders of the Corporate Debtor are typically the parties who can raise issues

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**Reasoning:** The court noted that the learned Senior Counsel for the Appellant was informed that the

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**Interpretation:** The interpretation of the law suggests that an operational creditor's ability

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**Application:** In this case, the Appellant, being an Operational Creditor, was deemed to lack

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** ATC Telecom…
- **Respondents:** Videocon Telecommu…; State Bank of…
- **Advocates:** Sanjay…; Rajshekha…; +3 more

## Timeline

- **2018-07-19 — Appeal F…**: The Appellant, an ‘Operational Creditor’ challenged the admission of the application…

## 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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