# In the matter of Impex Metal and Ferro Alloys Ltd. CP (IB) No. 176-KB-2018

> NCLT judgment dated 2018-03-09. Citation: TCN-2018-NCLT-01731. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 9 Mar 2018
- **Citation:** TCN-2018-NCLT-01731
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/impex-metal-and-ferro-alloys-ltd-cp-ib-no-176-kb-2018-a49015e6

## Summary

### Background

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Impex Metal and Ferro Alloys Ltd., alleging a default in payment of Rs.469,29,69,983.63 as of 31.12.2017. The application sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The corporate debtor contested the application, raising objections regarding the validity of the authorization, the existence of a default, and the maintainability of the application due to limitation.

## Facts

State Bank of India (SBI), the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Impex Metal and Ferro Alloys Ltd., the corporate debtor, before the National Company Law Tribunal (NCLT), Kolkata Bench. SBI claimed that Impex Metal and Ferro Alloys Ltd. had defaulted in making payment of Rs. 469,29,69,983.63 as of 31.12.2017. SBI sought initiation of the Corporate Insolvency Resolution Process (CIRP). The application was supported by various documents, including financial contracts, sanction letters, and statements of accounts. The corporate debtor contested the application, arguing that the applicant lacked the authority to initiate CIRP, that no default had occurred, and that the claim was barred by

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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 NCLT considered the documents submitted by the financial creditor, including the

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The NCLT applied Section 7 to the facts of the case, finding that the financial

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## Parties

- **Judges:** Jinan…
- **Appellants:** State Bank of…
- **Respondents:** Impex Metal and…; Impex Metal &…

## Timeline

- **2017-12-31 — Default…**: Corporate Debtor defaulted on…
- **2018-03-09 — Order Pron…**: Order pronounced admitting the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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