# In the matter of IND TOB International Private Limited CP (IB) No. 33-7-AMR-2021

> NCLT judgment dated 2021-12-23. Citation: TCN-2021-NCLT-00045. The case involves an application filed by State Bank of India (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 23 Dec 2021
- **Citation:** TCN-2021-NCLT-00045
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ind-tob-international-private-limited-cp-ib-no-33-7-amr-2021-6e029f70

## Summary

### Background

The case involves an application filed by State Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. IND TOB International Private Limited (Corporate Debtor). The Financial Creditor alleges that the Corporate Debtor defaulted in making payment of Rs. 63,20,75,944.67. The Corporate Debtor had approached the Financial Creditor for financial assistance and working capital loan facilities, leading to the sanction of various credit facilities. The Corporate Debtor and its Guarantors executed a Memorandum of Entry regarding mortgage by deposit of title deed dated 09.06.2014. Despite assistance from the Financial Creditor, the Corporate Debtor neglected

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## Facts

State Bank of India (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. IND TOB International Private Limited (Corporate Debtor). The Financial Creditor claimed a default of Rs. 63,20,75,944.67 by the Corporate Debtor. The Corporate Debtor had availed financial assistance and working capital loan facilities from the Financial Creditor, leading to the sanction of various credit facilities. A Memorandum of Entry regarding mortgage by deposit of title deed was executed on 09.06.2014. The Corporate Debtor allegedly neglected repaying the dues despite assistance from the Financial Creditor. A demand notice was issued on 30.03.2019, but the

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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 submissions made by both the Financial Creditor and the Corporate

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**Interpretation:** Section 7 of the IBC provides the legal basis for a financial creditor to

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**Application:** In this case, the Financial Creditor claimed a default of Rs. 63,20,75,944.67.

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** State Bank of…
- **Respondents:** IND TOB Internatio…; IND TOB Internatio…

## Timeline

- **2014-06-09 — Execution of Memorandum…**: The Corporate Debtor and its Guarantors executed a Memorandum of Entry regarding mortgage…
- **2019-03-30 — Demand Notice…**: The Financial Creditor issued a demand notice to the Corporate Debtor for the outstanding…

## 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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