# In the matter of S. A. Gold Ispat Pvt. Ltd. CP (IB) No. 275-CHD-J&K-2018

> NCLT judgment dated 2020-01-10. Citation: TCN-2020-NCLT-02386. The Jammu & Kashmir Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 Jan 2020
- **Citation:** TCN-2020-NCLT-02386
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/s-a-gold-ispat-pvt-ltd-cp-ib-no-275-chd-jk-2018-0d6bbe7c

## Summary

### Background

The Jammu & Kashmir Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against S A Gold Ispat Pvt. Ltd. for initiation of Corporate Insolvency Resolution Process (CIRP). The financial creditor claimed that the corporate debtor had defaulted on its loan repayments. The corporate debtor argued that there was a pre-existing dispute and that the account was wrongly declared as NPA. The Adjudicating Authority considered the submissions of both parties and examined whether the conditions for admitting the application under Section 7(5) of the Code were satisfied.

## Facts

Jammu & Kashmir Bank Ltd. (the financial creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against S A Gold Ispat Pvt. Ltd. (the corporate debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The corporate debtor had availed working capital facilities from the financial creditor, which were subsequently enhanced. Due to devastating floods in Kashmir in September 2014, the corporate debtor availed a rehabilitation/restructuring scheme. The loan accounts of the corporate debtor became irregular, and the financial creditor declared the account as NPA on 31.03.2016. The financial creditor issued recall notices and a demand notice under Section 13(2) of the SARFAESI Act. The corporate debtor contended that there

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is complete …

**Ratio:** Section 7(5) of the Code provides for admission of the application where the Adjudicating

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**Reasoning:** The Adjudicating Authority discussed the contents of the application and concluded that

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**Interpretation:** The completeness of the application under Section 7 is a prerequisite for its

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**Application:** In this case, the Adjudicating Authority found that the application was

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Jammu & Kashmir…
- **Respondents:** S A Gold Ispat…

## Timeline

- **2009-05-08 — Sanction…**: Working capital facility sanctioned in…
- **2010-10-01 — Credit Facility…**: Credit facility…

## 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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