# In the matter of Deepak Cables (India) Ltd. CP (IB)No. 154-BB-2017

> NCLT judgment dated 2018-08-23. Citation: TCN-2018-NCLT-00907. The case involves an application filed by State Bank of India (SBI), the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 23 Aug 2018
- **Citation:** TCN-2018-NCLT-00907
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deepak-cables-india-ltd-cp-ibno-154-bb-2017-de575f4d

## Summary

### Background

The case involves an application filed by State Bank of India (SBI), the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 4 of the I&B (AAA) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Deepak Cables (India) Ltd., the Corporate Debtor. SBI, along with State Bank of Mysore, had sanctioned loans to the Corporate Debtor. The Corporate Debtor's operations became strained, leading to a request for restructuring of credit facilities, which was approved. However, the Corporate Debtor failed to make payments, leading to the application for CIRP. The Tribunal allowed an amendment to the Company Petition after some errors were found.

## Facts

State Bank of India (SBI), acting as the Financial Creditor, filed an application to initiate Corporate Insolvency Resolution Process (CIRP) against Deepak Cables (India) Ltd., the Corporate Debtor. SBI, along with State Bank of Mysore, had previously sanctioned loans to the Corporate Debtor, amounting to Rs. 374 crores and Rs. 209 crores respectively. The Corporate Debtor hypothecated movable and immovable properties in favor of the Bank. Due to operational strain, the Corporate Debtor requested and received a restructuring of credit facilities, formalized through a Master Restructuring Agreement (MRA) executed on June 30, 2014. Despite the restructuring, the Corporate Debtor failed to make payments on the principal amount and interest. As of December 1, 2017, the

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the IBC, 2016 is …

**Ratio:** Section 7 of the IBC, read with the Insolvency and Bankruptcy (Application to

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**Reasoning:** The Tribunal examined the amended Company Petition and found that it fulfilled the

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**Interpretation:** Section 7 of the IBC mandates that the Adjudicating Authority must ascertain

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**Application:** In this case, the Tribunal found that the Financial Creditor's application was

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## Parties

- **Judges:** Rajeshwara Rao…; Ashok Kumar…
- **Appellants:** State Bank of…
- **Respondents:** Deepak Cables…

## Timeline

- **1955-07-01 — Incorporation of State…**: State Bank of India (Financial…
- **1977-06-20 — Incorporation of Deepak…**: Deepak Cables (Corporate…

## 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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