# in the matter of S R Foils and Tissue Ltd. CP No. IB-144-(PB)-2017

> NCLT judgment dated 2017-08-07. Citation: TCN-2017-NCLT-00656. ICICI Bank Limited, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 7 Aug 2017
- **Citation:** TCN-2017-NCLT-00656
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/s-r-foils-and-tissue-ltd-cp-no-ib-144-pb-2017-db728ed8

## Summary

### Background

ICICI Bank Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against SR Foils and Tissue Limited, the Corporate Debtor. The Financial Creditor claimed a default on the loan facilities extended to the Corporate Debtor. The total outstanding principal amount was Rs. 647.4 million, with an additional interest component of Rs. 491.1 million. The Corporate Debtor defaulted on 31.12.2013, admitting the dues but failing to make payment. The Financial Creditor classified the account as a Non-Performing Asset (NPA) on 18.04.2014. The Financial Creditor initiated recovery proceedings under the SARFAESI Act, taking symbolic possession of mortgaged properties. Several

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## Facts

ICICI Bank Limited extended loan facilities to SR Foils and Tissue Limited. The total outstanding principal amount was Rs. 647.4 million, with an interest component of Rs. 491.1 million. The Corporate Debtor defaulted on 31.12.2013, admitting the dues but failing to make payment. The account was classified as NPA on 18.04.2014. The Financial Creditor initiated SARFAESI Act proceedings, taking symbolic possession of mortgaged properties. Properties mortgaged by Mr. R.C. Gupta, Mr. Rishi Gupta, and Ms. Shanta Gupta were auctioned for Rs. 17.1 million, Rs. 12.4 million, and Rs. 20.1 million, respectively. The default continued, and on 31.01.2017, the property mortgaged at Bhiwadi was auctioned. After adjustments, a sum of Rs. 1,138.15 million remained in default. The

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has proved the occurrence of default as required by Section 3(11) …

**Ratio:** The legal principle is that a financial creditor must demonstrate that a default has

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**Reasoning:** The court reasoned that the Financial Creditor had presented overwhelming evidence of

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**Interpretation:** Section 3(11) and (12) of the IBC define 'debt' and 'default,' respectively.

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**Application:** In this case, the Financial Creditor provided evidence of loan facilities

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** ICICI Bank…
- **Respondents:** SR Foils and…; Rakesh…

## Timeline

- **2010-07-31 — Financial Debt…**: The Financial Creditor sanctioned facilities comprising an overall limit not exceeding…
- **2010-12-16 — Facility Reviewed and…**: The Financial Creditor reviewed the earlier facility and renewed the financial assistance…

## 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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