# In the matter of SAB Global Entertainment Media Private Limited C.P. (IB) No. 2731-NCLT-MB-2019

> NCLT judgment dated 2019-11-06. Citation: TCN-2019-NCLT-00690. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Nov 2019
- **Citation:** TCN-2019-NCLT-00690
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sab-global-entertainment-media-private-limited-cp-ib-no-2731-nclt-mb-2019-25d81dd4

## Summary

### Background

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against SAB Global Entertainment Media Private Limited, the Corporate Debtor. The application was filed due to a default on a term loan facility of ₹50,00,00,000/- sanctioned by the bank. The Corporate Debtor's account was classified as Non-Performing Asset (NPA) on 29.09.2017.

## Facts

Punjab National Bank sanctioned a term loan of ₹50,00,00,000/- to SAB Global Entertainment Media Private Limited, documented via a Sanction Letter dated 03.03.2015 and a Loan Agreement dated 30.03.2015. The loan was secured by hypothecation and a Deed of Negative Lien and Indenture of Mortgage, also dated 30.03.2015. The loan was repayable in 72 monthly installments, with the last installment due in September 2022. The Corporate Debtor defaulted, leading to the account being classified as NPA on 29.09.2017. A notice was issued on 17.10.2017 under Section 13(2) of the Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002, demanding ₹49,80,45,465/-. As of 09.07.2019, the outstanding balance was ₹47,88,75,560/-, while the

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## Issues and analysis

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

**Ratio:** Section 7 of the I&B Code, 2016, allows a financial creditor to initiate CIRP against

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**Reasoning:** The court observed that the application was filed in the proper form and all necessary

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The court found that the application was complete and filed under the proper

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## Parties

- **Judges:** Mr Bhaskara…; Mr Rajesh…
- **Appellants:** Punjab National…
- **Respondents:** SAB Global…

## Timeline

- **2015-03-03 — Sanction…**: Sanction Letter No. MCB/L/SGEMPL/2015…
- **2015-03-30 — Loan Agre…**: Loan Agreement entered into between Punjab National Bank and SAB Global Entertainment…

## 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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