# In the matter of KGS Sugar and Infra Corporation Limited CP(IB)No.2156-NCLT-MB-2019

> NCLT judgment dated 2019-10-10. Citation: TCN-2019-NCLT-01047. Canara Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 10 Oct 2019
- **Citation:** TCN-2019-NCLT-01047
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kgs-sugar-and-infra-corporation-limited-cpibno2156-nclt-mb-2019-da6fae2a

## Summary

### Background

Canara Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against KGS Sugar & Infra Corporation Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The application was filed due to a default of ₹2,64,03,54,938/- including interest as of 31.03.2019.

## Facts

Canara Bank, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against KGS Sugar & Infra Corporation Limited, the Corporate Debtor, due to a default of ₹2,64,03,54,938/- including interest as of 31.03.2019. The Applicant Bank had extended financial assistance to the Corporate Debtor through various sanction letters, including term loans and OCC/OD facilities. The Corporate Debtor defaulted on payments starting 24.01.2017 and was declared an NPA on 24.04.2017. The Corporate Debtor issued a Revival Letter dated 06.12.2017, acknowledging the loans. The Corporate Debtor served Court Notice and copy of Petition on 12.06.2019. The Applicant declared the Corporate Debtor's account as NPA on 22.04.2017 and issued

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## Issues and analysis

### Issue 1: Whether the application under Section 7 …

**Ratio:** Section 7 of the I&B Code, 2016 outlines the requirements for initiating the

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**Reasoning:** The court examined the application and found it to be complete, fulfilling all the

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**Interpretation:** The completeness of the application is a prerequisite for its admission,

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**Application:** The court determined that the application contained all the required

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## Parties

- **Judges:** Mr V. P.…; Mr Rajesh…
- **Appellants:** Canara…
- **Respondents:** KGS Sugar and…

## Timeline

- **2011-12-22 — Sanction Lette…**: Applicant issued sanction letter sanctioning…
- **2012-03-23 — Sanction Lette…**: Sanction Letter sanctioning…

## 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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