# In the matter of Metal Link Alloys Ltd. C.P. (I.B) No. 67-10-NCLT-AHM-2017

> NCLT judgment dated 2017-08-17. Citation: TCN-2017-NCLT-00605. The case pertains to an application filed by Metal Link Alloys Ltd., through its Director…

- **Court:** NCLT
- **Order date:** 17 Aug 2017
- **Citation:** TCN-2017-NCLT-00605
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/metal-link-alloys-ltd-cp-ib-no-67-10-nclt-ahm-2017-79c97575

## Summary

### Background

The case pertains to an application filed by Metal Link Alloys Ltd., through its Director Rajmal Mangilal Jain, under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process. State Bank of India, through its Industrial Finance Branch, Mumbai, had granted various credit facilities to the company. The company was unable to discharge the outstanding amount due to the Financial Creditors and Operational Creditors. The State Bank of India had also issued a notice under Section 13(2) of the Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002.

## Facts

Metal Link Alloys Ltd. filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process. Rajmal Mangilal Jain, Director of the Company, was authorized to file the application. State Bank of India had granted credit facilities to the company. As of 2014-11-30, the total outstanding amount due from the Corporate Debtor was Rs. 60,53,54,448.93, with further interest at contractual rates. State Bank of India issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 2014-12-29. The company has two Secured Financial Creditors, State Bank of India and Bank of India, and Unsecured Creditors to the extent of Rs. 70.10 lacs. The applicant executed loan documents and created Equitable Mortgage in

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## Issues and analysis

### Issue 1: Whether the initiation of proceedings under Section 13(2) of the Securitisation And Reconstruction …

**Ratio:** The initiation of proceedings under Section 13(2) of the Securitisation And

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**Reasoning:** The Adjudicating Authority considered the initiation of proceedings under Section 13(2)

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**Interpretation:** This means that even if a creditor has initiated proceedings under the SARFAESI

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**Application:** In this case, State Bank of India had issued a notice under Section 13(2) of

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Rajmal Mangilal…
- **Respondents:** Metal Link Alloys…; State Bank of…

## Timeline

- **2014-11-30 — Outstanding Am…**: Total outstanding amount due from the…
- **2014-12-29 — SARFAESI Notic…**: State Bank of India issued Notice under Section 13(2) of the Securitisation And…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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