# In the matter of Bhushan Steel Ltd. CP No. (IB)-201 (PB)-2017

> NCLT judgment dated 2017-07-26. Citation: TCN-2017-NCLT-00698. The State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 26 Jul 2017
- **Citation:** TCN-2017-NCLT-00698
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhushan-steel-ltd-cp-no-ib-201-pb-2017-40704ed0

## Summary

### Background

The State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Bhushan Steel Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petition was filed due to the corporate debtor's default on loan repayments. The State Bank of India, along with its merged associate banks, had extended various credit facilities to Bhushan Steel Limited. The corporate debtor's financial difficulties were attributed to various factors, including changes in government policies, court orders, and external global factors. The petition was filed on 2017-07-03.

## Facts

State Bank of India (SBI) filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against Bhushan Steel Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The total debt granted to Bhushan Steel Limited amounted to ₹9227,15,79,856 as Indian Rupee Loan and US$ 527,434,877 as Foreign Currency Loan. The details of the disbursement were furnished in Annexure P/6. Bhushan Steel Limited defaulted on its loan repayments. The total amount in default was Rs. 4390,75,41,611 for the Indian Rupee Loans and US$ 49,684,877 towards the Foreign Currency Loan. The Corporate Debtor and/or Mr. Brij Bhushan Singal and Mr. Neeraj Singal issued revival letters constituting its acknowledgment of liabilities towards the Financial Creditor in

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## Issues and analysis

### Issue 1: Whether the application filed by State Bank of India under Section 7 of the Insolvency and …

**Ratio:** Section 7(5)(a) of the IBC read with Section 3(12) defines the conditions for admitting

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**Reasoning:** The court found that the State Bank of India had provided sufficient evidence to

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**Interpretation:** The court interpreted Section 7 of the IBC to mean that if the Adjudicating

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**Application:** The court applied the ratio to the facts of the case, finding that the State

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## Parties

- **Judges:** CHIEF JUSTICE…; DeepaKr…
- **Appellants:** State Bank of…
- **Respondents:** Bhushan Steel…

## Timeline

- **2016-12-06 — Default…**: Default date for Erstwhile…
- **2017-02-01 — Default…**: Default date 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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