# In the matter of Vikas Aggarwal Vs. State Bank of India & Asian Colour Coated Ispat Limited CA(AT)(Insolvency)587-2018

> NCLAT judgment dated 2019-02-08. Citation: TCN-2019-NCLAT-00782. The State Bank of India, as a Financial Creditor, initiated a Corporate Insolvency Resolution…

- **Court:** NCLAT
- **Order date:** 8 Feb 2019
- **Citation:** TCN-2019-NCLAT-00782
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vikas-aggarwal-vs-state-bank-of-india-asian-colour-coated-ispat-limited-ca-5a8510a9

## Summary

### Background

The State Bank of India, as a Financial Creditor, initiated a Corporate Insolvency Resolution Process (CIRP) against Asian Colour Coated Ispat Ltd. (Corporate Debtor) by filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) on December 29, 2017. The Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi, initially did not pass any order due to a Writ Petition filed by the Corporate Debtor in the Delhi High Court. Subsequently, the Adjudicating Authority admitted the application under Section 7 after notice and hearing the Corporate Debtor, vide an order dated July 20, 2018. This order was challenged by Vikas Aggarwal, the Shareholder/Director of the Corporate Debtor.

## Facts

On December 29, 2017, State Bank of India (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Asian Colour Coated Ispat Ltd. (Corporate Debtor). The Adjudicating Authority initially did not pass an order due to a Writ Petition filed by the Corporate Debtor in the Delhi High Court. Subsequently, on July 20, 2018, the Adjudicating Authority admitted the application under Section 7 after notice and hearing the Corporate Debtor. Vikas Aggarwal, the Shareholder/Director of the Corporate Debtor, challenged this order. The Appellant argued that the Financial Creditor failed to cure defects in the Section 7 application despite multiple opportunities. The

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in admitting the application under Section 7 of …

**Ratio:** The scheme of the Code ensures that when a default takes place, in the sense that a debt

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**Reasoning:** The Adjudicating Authority was satisfied that a default had occurred and that the

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial

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**Application:** In this case, the Adjudicating Authority was satisfied that a default had

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Vikas Agg…
- **Respondents:** ASIAN COLOUR…; State Bank of…
- **Advocates:** Tanmay…; Ankit G…; +4 more

## Timeline

- **2017-12-29 — Application…**: State Bank of India filed an application under Section 7 of the I&B Code for initiation…
- **2018-07-20 — Application A…**: The Adjudicating Authority admitted the application under Section 7 after notice and…

## 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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