# In the matter of SBQ Steels Limited CP-665-(IB)-CB-2017

> NCLT judgment dated 2017-12-29. Citation: TCN-2017-NCLT-00004. The case involves a petition filed by Union Bank of India Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 29 Dec 2017
- **Citation:** TCN-2017-NCLT-00004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sbq-steels-limited-cp-665-ib-cb-2017-b0faa48d

## Summary

### Background

The case involves a petition filed by Union Bank of India Limited, the Financial Creditor, against SBQ Steels Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor claimed that the Corporate Debtor defaulted on a debt of Rs. 249,37,79,003.69 as of 21.08.2017. The Corporate Debtor had availed financial assistance granted by the Financial Creditor through various agreements. The Financial Creditor submitted that the Corporate Debtor was unable to pay its financial debt, leading to the petition before the Adjudicating Authority.

## Facts

Union Bank of India Limited (Financial Creditor) filed a petition against SBQ Steels Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor claimed a default of Rs. 249,37,79,003.69 as of 21.08.2017. The debt arose from financial assistance provided to the Corporate Debtor through various agreements. The Financial Creditor had provided a loan to the Corporate Debtor secured by an equitable mortgage pari-pasu charge on land and hypothecation deeds on movable properties. The Financial Creditor issued a recall notice on 19.09.2014, and the Corporate Debtor replied on 25.09.2019 to a letter dated 19.09.2017. A demand notice was issued under Section 13(2) of the SARFAESI Act, 2002, on 28.01.2015, and the Corporate

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## Issues and analysis

### Issue 1: Whether the Petitioner/FC has complied with all the requirements as stipulated under the provisions …

**Ratio:** The legal principle is that the Adjudicating Authority must be satisfied that the

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**Reasoning:** The Adjudicating Authority heard both sides and considered the submissions of the counsel

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**Interpretation:** This involves interpreting the provisions of the IB Code, 2016, and the rules

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**Application:** The Adjudicating Authority applied this principle by examining the evidence and

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** Union Bank of…
- **Respondents:** SBQ Steels…
- **Advocates:** T.K. Bh…; Srinath Sr…; +2 more

## Timeline

- **2014-09-19 — Recall Notice…**: The Financial Creditor issued a…
- **2015-01-28 — Demand Notice…**: The Corporate Debtor again issued Demand Notice under section 13(2) of the SARFAESI Act,…

## 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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