# In the matter of Indian Steel Corporation Limited IA No.396-2020 in CP (IB) No.3846-MB-II-2019

> NCLT judgment dated 2020-05-06. Citation: TCN-2020-NCLT-01374. The case involves a petition filed by India Resurgence ARC Private Limited (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 6 May 2020
- **Citation:** TCN-2020-NCLT-01374
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/indian-steel-corporation-limited-ia-no396-2020-in-cp-ib-no3846-mb-ii-2019-880c9b1d

## Summary

### Background

The case involves a petition filed by India Resurgence ARC Private Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Indian Steel Corporation Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor failed to make payment of ₹1487.59 crore as of 30.09.2019. The debt was acquired by the Financial Creditor through an Assignment Agreement dated 03.05.2019 with State Bank of India (SBI). The Corporate Debtor challenged the maintainability of the petition, raising issues of limitation, breach of inter-creditor agreements, and inadequacy of stamp duty on documents.

## Facts

1. India Resurgence ARC Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Indian Steel Corporation Limited (Corporate Debtor).
2. The Financial Creditor claimed that the Corporate Debtor failed to make payment of ₹1487.59 crore as of 30.09.2019.
3. The Financial Creditor acquired the debt through an Assignment Agreement dated 03.05.2019 with State Bank of India (SBI).
4. The debt included loans extended to the Corporate Debtor by SBI and its erstwhile associate banks.
5. A consortium of ten banks extended Term Loan Facility to the Corporate Debtor under a Joint Agreement for Term Loan dated 09.09.2008 to the extent of ₹663 crore.
6. Separately,

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## Issues and analysis

### Issue 1: Whether the petition filed by the …

**Ratio:** The Limitation Act, 1963, applies to applications filed under Section 7 of the IBC.

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**Reasoning:** The Adjudicating Authority found that the Financial Creditor had not proved beyond doubt

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**Interpretation:** The date of default is the key determinant in deciding the question of

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**Application:** In this case, the Financial Creditor's own case was that the date of default

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** India Resurgence…
- **Respondents:** Indian Steel…

## Timeline

- **2008-09-09 — Term Loan Facility…**: A consortium of ten banks extended Term Loan Facility to the Corporate Debtor under a…
- **2013-06-22 — Working Capital…**: A second consortium of nine banks advanced Working Capital Credit facilities to the…

## 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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