# In the matter of Tribhuwan Singh VS State Bank of India & An.,CompAny Appea  (AT) (Ins.) No. 1372 of 2022

> NCLAT judgment dated 2022-11-24. Citation: TCN-2022-NCLAT-00073. This is an appeal against the order dated 29.09.2022 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 24 Nov 2022
- **Citation:** TCN-2022-NCLAT-00073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/tribhuwan-singh-vs-state-bank-of-india-ancompany-appea-165c607d

## Summary

### Background

This is an appeal against the order dated 29.09.2022 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, which admitted a Section 7 application filed by the State Bank of India. The financial facility of Rs. 178 Crore was sanctioned, out of which Rs. 95 Crore was disbursed. Upon default, the Financial Creditor filed a Section 7 application, which the Corporate Debtor objected to on grounds including limitation and Section 10A. The Corporate Debtor claimed to be taking steps to settle the matter with the Bank.

## Facts

The State Bank of India sanctioned a financial facility of Rs. 178 Crore, disbursing Rs. 95 Crore. The Corporate Debtor defaulted, leading the State Bank of India to file a Section 7 application under the Insolvency and Bankruptcy Code (IBC). The Corporate Debtor objected to the application, citing grounds of limitation and Section 10A of the IBC. The Adjudicating Authority admitted the application, finding that the application was not barred by limitation, and that Section 10A did not affect the maintainability of the application. The Corporate Debtor argued that they were expecting payment from the government and that non-payment was not a reason to send the Corporate Debtor to insolvency. The Appellant also contended that the State Bank of India had committed a

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 7 application filed by the State …

**Ratio:** The Adjudicating Authority has the power to admit a Section 7 application if the

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**Reasoning:** The NCLAT held that the Adjudicating Authority did not commit any error in admitting the

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate corporate

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**Application:** The Adjudicating Authority correctly applied the provisions of Section 7 of the

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## Parties

- **Judges:** Ashok Bh…; Alok Sriv…; +1 more
- **Appellants:** Tribhuwan…
- **Respondents:** State Bank of…
- **Advocates:** Abhijeet…; Utsav Muk…; +5 more

## Timeline

- **2022-09-29 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, passed…
- **2022-11-24 — Hearing by…**: The NCLAT heard the arguments of the…

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