# In the matter of Finecrete Eco-Blocks Private Limited CP(IB)No. 26-KB-2019

> NCLT judgment dated 2019-10-03. Citation: TCN-2019-NCLT-01100. The case involves an application for the initiation of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 3 Oct 2019
- **Citation:** TCN-2019-NCLT-01100
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/finecrete-eco-blocks-private-limited-cpibno-26-kb-2019-6db362d4

## Summary

### Background

The case involves an application for the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was filed by State Bank of India, the financial creditor, against Finecrete Eco Blocks Private Limited, the corporate debtor. The amount of default was stated as Rs. 44,22,28,132.22, with the date of default being 13.03.2017. The State Bank of Bikaner, an associate bank of State Bank of India, had sanctioned limits and disbursed a loan to the corporate debtor. The bank later merged with State Bank of India on 01.04.2017.

## Facts

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Finecrete Eco Blocks Private Limited. The amount of default was Rs. 44,22,28,132.22, with the default date being 13.03.2017. State Bank of Bikaner, an associate bank of State Bank of India, had previously sanctioned and disbursed a loan to Finecrete Eco Blocks Private Limited. State Bank of Bikaner merged with State Bank of India on 01.04.2017. The financial creditor argued that the corporate debtor's account was classified as a Non-Performing Asset (NPA). A notice under Section 13(2) was issued to the corporate debtor on 06.08.2018, and a Balance Confirmation Certificate was issued by the corporate

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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:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court considered the submissions made by both parties and perused the material on

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The court found that the financial creditor had established a default by the

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** State Bank of…
- **Respondents:** M/S FINECRETE ECO…

## Timeline

- **2017-03-13 — Date of D…**: The date on which the corporate debtor, Finecrete Eco Blocks Private Limited, defaulted…
- **2017-04-01 — Merger of…**: State Bank of Bikaner merged…

## 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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