# In the matter of Saber Paper Board Pvt. Ltd. CP (IB) No. 376-Chd-Pb-2018

> NCLT judgment dated 2020-01-07. Citation: TCN-2020-NCLT-02470. State Bank of India (SBI) filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 7 Jan 2020
- **Citation:** TCN-2020-NCLT-02470
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/saber-paper-board-pvt-ltd-cp-ib-no-376-chd-pb-2018-5ab6a62f

## Summary

### Background

State Bank of India (SBI) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Saber Paper Board Pvt. Ltd. SBI claimed a default of ₹147,34,28,079. Saber opposed the petition, arguing that SBI's statement of account was not in accordance with the law, that there was no specific authorization for filing the application, and that the petition was primarily a forum hunting exercise since SARFAESI proceedings were already initiated. Saber also contended that SBI was required to carry out restructuring as per a Techno-Economic Viability (TEV) study.

## Facts

State Bank of India (SBI) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Saber Paper Board Pvt. Ltd. SBI claimed a default of ₹147,34,28,079. The days of default were stated as 2068 days as on 30.09.2018, calculated from 30.01.2013 (NPA date). Saber Paper Board Pvt. Ltd. had its registered office at VPO - Jugiana, G.T. Road, Ludhiana-141001. SBI's application was signed by Shri Kailash Chander, Assistant General Manager (AGM) of SBI. Saber filed a reply contending that SBI's statement of account was not in accordance with the law, that there was no specific authorization for filing the application, and that the petition was primarily a forum hunting exercise since SARFAESI

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## Issues and analysis

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

**Ratio:** Section 7 of the Code allows a financial creditor to file an application for initiation

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**Reasoning:** The Tribunal found that the occurrence of default was proved through the filing of the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to initiate CIRP against

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**Application:** The Tribunal applied Section 7 to the facts of the case, finding that SBI had

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** State Bank of…
- **Respondents:** Saber Paper Board…; M/s Saber Paper…
- **Advocates:** PBA Srini…; Parth T…; +1 more

## Timeline

- **2013-01-30 — NPA Date…**: The date on which the account of Saber Paper Board Pvt. Ltd. was declared as…
- **2013-06-13 — Revival L…**: A revival letter was issued by Saber Paper…

## 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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