# In the matter of Bajrangbali Alloys Private Limited CP (IB) No. 643-KB-2017

> NCLT judgment dated 2018-02-15. Citation: TCN-2018-NCLT-01820. Small Industries Development Bank of India (SIDBI) filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 15 Feb 2018
- **Citation:** TCN-2018-NCLT-01820
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bajrangbali-alloys-private-limited-cp-ib-no-643-kb-2017-8e874ae7

## Summary

### Background

Small Industries Development Bank of India (SIDBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Bajrangbali Alloys Private Limited, the Corporate Debtor, for defaulting on a payment of Rs.7,58,23,342/-. SIDBI had provided various credit facilities to the Corporate Debtor between 1997 and 2007, which were initially settled. However, the Corporate Debtor later defaulted on loan repayments starting around June 2012, leading to the account being classified as a Non-Performing Asset (NPA) on 10.08.2012. Despite demand notices and a One Time Settlement (OTS) offer that was later withdrawn due to non-compliance, the debt remained unpaid, prompting SIDBI to initiate recovery proceedings under the SARFAESI Act and subsequently file a

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## Facts

Small Industries Development Bank of India (SIDBI) extended various credit facilities to Bajrangbali Alloys Private Limited between 1997 and 2007, which were initially settled. The Corporate Debtor again approached SIDBI for further credit facilities, including term loans and working capital, between 2008 and 2011. The Corporate Debtor started defaulting on loan repayments around June 2012, leading to a total outstanding amount of Rs.7,58,23,342/- as of 10.08.2012. SIDBI issued a demand notice on 21.05.2013 and requested the handover of secured assets on 14.08.2013. A One Time Settlement (OTS) offer of Rs.391 lakhs was sanctioned on 12.11.2013 but was later withdrawn on 30.04.2014 due to non-compliance by the Corporate Debtor. SIDBI initiated recovery proceedings under

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** The application must be in the proper format as prescribed in the I&B Code and

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**Reasoning:** The Tribunal reviewed the record and found that the application filed by the Financial

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**Interpretation:** Section 7 of the IBC, along with the relevant rules, specifies the format and

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**Application:** The Tribunal determined that the application met all the necessary

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## Parties

- **Judges:** Jinan…
- **Appellants:** Small Industries…
- **Respondents:** Bajrangbali…

## Timeline

- **1997-01-01 — Credit Facilities…**: Between 1997 and 2007, SIDBI provided various credit facilities to Bajrangbali Alloys…
- **2008-08-14 — Term Loan App…**: Corporate Debtor approached SIDBI for…

## 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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