# In the matter of Norton Aluminium (India) Pvt. Ltd. C.P.(IB)-1615(MB)-2017

> NCLT judgment dated 2018-06-22. Citation: TCN-2018-NCLT-01231. The case involves a Company Petition filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 22 Jun 2018
- **Citation:** TCN-2018-NCLT-01231
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/norton-aluminium-india-pvt-ltd-cpib-1615mb-2017-ac219823

## Summary

### Background

The case involves a Company Petition filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 by Norton Aluminium (India) Pvt. Ltd. for initiating the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor disclosed outstanding dues of ₹13,07,64,889 as of March 31, 2017, to a Financial Creditor (State Bank of India) and Operational Creditors. The State Bank of India had sanctioned credit facilities to the Corporate Debtor, and subsequently issued a SARFAESI notice claiming ₹10,02,88,446.88 as outstanding as of September 13, 2014. The Corporate Debtor filed the petition, and the Financial Creditor (SBI) objected, citing ongoing SARFAESI proceedings.

## Facts

Norton Aluminium (India) Pvt. Ltd. filed a Company Petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor's registered office is located in Mumbai. As of March 31, 2017, the Corporate Debtor owed ₹13,07,64,889 to a Financial Creditor (State Bank of India) and Operational Creditors. The State Bank of India had sanctioned credit facilities to the Corporate Debtor, including cash credit, bill discounting, and import/inland LC limits. The State Bank of India issued a SARFAESI notice dated September 13, 2014, claiming ₹10,02,88,446.88 as outstanding. The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on September 13, 2014. The State Bank of

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## Issues and analysis

### Issue 1: Whether the existence of ongoing SARFAESI proceedings initiated by the Financial Creditor (State …

**Ratio:** The initiation or pendency of SARFAESI proceedings does not automatically preclude the

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**Reasoning:** The NCLT reasoned that the Financial Creditor had conducted multiple auctions to sell the

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**Interpretation:** The interpretation is that the IBC is a comprehensive code for insolvency

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**Application:** In this case, the NCLT applied the principle that the existence of SARFAESI

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## Parties

- **Judges:** B.S.V. Prakash…; Ravikumar…; +1 more
- **Respondents:** Norton Aluminium…; R.J. Singh, Adv.…

## Timeline

- **2007-04-11 — Incorporation of…**: Norton Aluminium (India)…
- **2011-02-07 — Sanction…**: State Bank of India issued a sanction letter for credit facilities to the Corporate…

## 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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