# in the matter of Alok Industries Ltd. CP (IB) No. 48-7-AHM-2017

> NCLT judgment dated 2017-07-18. Citation: TCN-2017-NCLT-00732. State Bank of India filed an application to initiate Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 18 Jul 2017
- **Citation:** TCN-2017-NCLT-00732
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alok-industries-ltd-cp-ib-no-48-7-ahm-2017-0add5623

## Summary

### Background

State Bank of India filed an application to initiate Corporate Insolvency Resolution Process (CIRP) against Alok Industries Limited under the Insolvency and Bankruptcy Code, 2016. SBI, along with its associate banks, had granted various term loans and working capital facilities to Alok Industries. The application was filed due to defaults in repayment by Alok Industries. The applicant served a copy of the application on the Corporate Debtor/respondent. This application is filed before this tribunal on June 29, 2017. This application is listed before this Tribunal for the first time on July 12, 2017.

## Facts

State Bank of India (SBI), along with its associate banks, had extended various term loans and working capital facilities to Alok Industries Limited. As of May 31, 2017, Alok Industries defaulted on payments. SBI filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Alok Industries. The aggregate sanctioned amount by SBI and its associate banks was INR 4636.42 crores, INR 1483.30 crores, INR 976.76 crores, INR 727.16 crores, INR 772.41 crores and INR 674.80 crores respectively. The amounts defaulted as of May 31, 2017, were INR 2218.56 crores, INR 309.92 crores, INR 419.20 crores, INR 252.63 crores, INR 320.04 crores and INR 251.80 crores respectively. Alok Industries

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## Issues and analysis

### Issue 1: Whether the Tribunal can entertain and pass orders in this application, in view of the pendency of …

**Ratio:** Section 238 of the Insolvency and Bankruptcy Code, 2016, has an overriding effect over

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**Reasoning:** The Adjudicating Authority considered the pendency of winding-up petitions before the

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**Interpretation:** The interpretation of Section 238 clarifies that the IBC takes precedence over

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**Application:** Despite the pending winding-up petitions, the Adjudicating Authority determined

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** State Bank of…
- **Respondents:** Alok Industries…; Alok Industries…
- **Advocates:** Animesh…; Sahil…; +3 more

## Timeline

- **1955-01-01 — State Bank of…**: State Bank of India established under…
- **2016-01-01 — Winding up P…**: HongKong and Shanghai Banking Corporation Limited filed winding up Petition against…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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