# In the matter of Castex Technologies Limited CP (IB) No. 116-Chd-Hry-2017

> NCLT judgment dated 2017-12-20. Citation: TCN-2017-NCLT-00020. State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 Dec 2017
- **Citation:** TCN-2017-NCLT-00020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/castex-technologies-limited-cp-ib-no-116-chd-hry-2017-656eedbc

## Summary

### Background

State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the corporate insolvency resolution process against Castex Technologies Limited. The petition was filed due to the corporate debtor's default on various loan facilities granted by the State Bank of India and its erstwhile associate banks. The total amount of debt granted by the financial creditor to the corporate debtor is ₹1191,54,00,000/-, and the amount of default is ₹572,44,81,139/- as on 09.10.2017.

## Facts

State Bank of India (SBI) filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Castex Technologies Limited to initiate the corporate insolvency resolution process (CIRP). SBI, established under the State Bank of India Act, 1955, claimed that Castex Technologies defaulted on loan facilities granted by SBI and its former associate banks. Castex Technologies was incorporated on 02.12.1983 with a substantial authorized and paid-up capital. SBI stated that it had sanctioned various loan facilities to Castex Technologies, including term loans and corporate loans, with details of disbursements provided in the application. The total debt amounted to ₹1191,54,00,000/-, with a default of ₹572,44,81,139/- as of 09.10.2017. SBI submitted

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## Issues and analysis

### Issue 1: Whether the petitioner, State Bank of India, has fulfilled the requirements of Section 7 of the …

**Ratio:** Section 7 of the IBC requires the financial creditor to furnish a record of default and

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**Reasoning:** The court observed that the petitioner had supplied complete information as required

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**Interpretation:** Section 7 of the IBC outlines the procedure for initiating the corporate

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**Application:** The court found that State Bank of India had provided sufficient evidence of

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** State Bank of…
- **Respondents:** Castex Technologie…
- **Advocates:** Mish…; Sidhant…; +1 more

## Timeline

- **1955-07-01 — Incorporation of State…**: State Bank of India was incorporated…
- **1983-12-02 — Incorporation of Castex…**: Castex Technologies Limited was…

## 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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