# In the matter of State Bank of India vs. Abhijeet Ferrotech Limited

> NCLAT judgment dated 2024-07-02. Citation: TCN-2024-NCLAT-00353. The State Bank of India (SBI) filed an appeal challenging the order dated 21.03.2023 passed…

- **Court:** NCLAT
- **Order date:** 2 Jul 2024
- **Citation:** TCN-2024-NCLAT-00353
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-abhijeet-ferrotech-limited-e858e261

## Summary

### Background

The State Bank of India (SBI) filed an appeal challenging the order dated 21.03.2023 passed by the National Company Law Tribunal (NCLT), Cuttack Bench, which rejected SBI's Section 7 application to initiate Corporate Insolvency Resolution Process (CIRP) against Abhijeet Ferrotech Ltd. The NCLT rejected the application because it believed that the proceedings were barred due to an earlier order by the Debt Recovery Tribunal (DRT), Kolkata, in T.A. No. 179 of 2020, dated 17.06.2022. The NCLT framed a question for consideration: Whether the proceeding of this petition is barred in view of the order passed by DRT-II, Kolkata in T.A. No.179 of 2020 dated 17.06.2022 and liable to be rejected?

## Facts

The State Bank of Travancore sanctioned a loan of Rs.99 crores to Abhijeet Ferrotech Limited on 17.03.2012. The working capital limit of Rs.99 crores was renewed on 08.04.2013. The account was declared NPA on 31.03.2013. SBI and other lenders entered into a Master Restructuring Agreement on 28.09.2013. The State Bank of Travancore restructured credit facilities on 14.02.2014, sanctioning Rs.89,46,00,000/-. A Deed of Accession and Modification was executed on 26.03.2014. The State Bank of Travancore sanctioned an additional limit of Rs.36,74,00,000/- on 23.12.2015, and Rs.1,26,20,00,000/- on 28.12.2015. On 30.09.2016, the loan account slipped into NPA due to default in payment for more than 90 days. SBI recalled the loan on 25.11.2016. Proceedings under Section 13(2) of

…

## Issues and analysis

### Issue 1: Whether the proceeding of this petition is barred in view of the order passed by DRT-II, Kolkata in …

**Ratio:** Section 238 of the IBC provides that the provisions of the IBC shall have effect,

…

**Reasoning:** The NCLAT reasoned that the proceedings under Section 19 of the 1993 Act and the order of

…

**Interpretation:** The interpretation of Section 238 of the IBC is that it overrides any

…

**Application:** In this case, the NCLAT applied the ratio of Section 238 and the precedents to

…

## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** State Bank of…
- **Respondents:** Abhijeet Ferrotech…; ABHIJEET FERROTECH…

## Timeline

- **2012-03-17 — Loan Sanc…**: State Bank of Travancore sanctioned a loan…
- **2013-03-31 — Account Decla…**: The accounts of the Corporate Debtor were…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-abhijeet-ferrotech-limited-e858e261