# In the matter of Shakti Bhog Foods Limited (IB)-24(PB)-2018

> NCLT judgment dated 2018-02-08. Citation: TCN-2018-NCLT-01864. State Bank of India, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 8 Feb 2018
- **Citation:** TCN-2018-NCLT-01864
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shakti-bhog-foods-limited-ib-24pb-2018-a2a6154f

## Summary

### Background

State Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against M/s. Shakti Bhog Foods Limited, the Corporate Debtor. The Financial Creditor claimed a 'Financial debt' of Rs. 20,45,34,90,165.90, recoverable under various loan facilities granted to the Corporate Debtor, which was stated to be in default.

## Facts

State Bank of India (SBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Shakti Bhog Foods Limited, claiming to be a Financial Creditor with a 'Financial debt' of Rs. 20,45,34,90,165.90. This amount was allegedly recoverable under various loan facilities granted by SBI to Shakti Bhog Foods Limited, which was stated to be in default as of 27.12.2017. However, the High Court of Delhi had already admitted a Company Petition against Shakti Bhog Foods Limited, initiating liquidation proceedings. The NCLAT had previously ruled that no application under Section 7, 9, or 10 of the IBC is maintainable if a liquidation order has already been passed against the

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## Issues and analysis

### Issue 1: Whether a Corporate Insolvency Resolution Process can be initiated against a corporate debtor …

**Ratio:** Corporate Insolvency Process cannot be initiated against a corporate debtor undergoing a

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**Reasoning:** The Hon'ble Appellate Tribunal has taken the view that no application under Section 7, 9

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**Interpretation:** The interpretation of Section 11(d) of the IBC and the meaning of 'winding up'

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**Application:** Since the High Court of Delhi had already admitted a Company Petition against

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** State Bank of…
- **Respondents:** M/s. Shakti Bhog…; M/s. Narendra M.…

## Timeline

- **2017-12-27 — Date of D…**: The amount of Rs. 20,45,34,90,165.90 was…
- **2018-01-18 — High Court…**: The Hon'ble High Court of Delhi admitted Company Petition namely CFSIT, Inc v. Shakti…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11(d) — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

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