# In the matter of Splendid Metal Products Ltd. CP (IB) No.666-7-HDB-2018

> NCLT judgment dated 2019-04-04. Citation: TCN-2019-NCLT-04158. The case involves a Company Petition filed by Punjab National Bank (PNB), the Financial…

- **Court:** NCLT
- **Order date:** 4 Apr 2019
- **Citation:** TCN-2019-NCLT-04158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/splendid-metal-products-ltd-cp-ib-no666-7-hdb-2018-037973ef

## Summary

### Background

The case involves a Company Petition filed by Punjab National Bank (PNB), the Financial Creditor, against Splendid Metal Products Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had availed various credit facilities, including term loans and working capital limits, from PNB and other banks under a consortium banking arrangement. Due to internal and external factors, the Corporate Debtor faced financial strain and requested debt restructuring. The account was referred to the Corporate Debt Restructuring Forum, and a restructuring package was approved. However, the Corporate Debtor continued to default on its obligations.

## Facts

Punjab National Bank (PNB) filed a petition against Splendid Metal Products Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Splendid Metal Products Limited had availed credit facilities from PNB and other banks under a consortium. These facilities included a Term Loan of Rs. 113.32 Crores, a fund-based working capital limit of Rs. 130.00 Crores, and a non-fund-based LC limit of Rs. 120.00 Crores. Other banks in the consortium included Bank of India, State Bank of India, Indian Overseas Bank, Bank of Baroda, Andhra Bank, Oriental Bank of Commerce, Lakshmi Vilas Bank, Karnataka Bank, SASF, and IDBI Bank Limited. Due to financial difficulties, the Corporate Debtor requested debt restructuring, which was referred to the Corporate Debt Restructuring

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Splendid Metal Products Limited, defaulted on its financial …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court found that the Financial Creditor (PNB) had provided sufficient evidence,

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**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial creditor can

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**Application:** The court applied the ratio to the facts by examining the evidence presented by

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** Punjab National…
- **Respondents:** Splendid Metal…; M/s. Splendid…
- **Advocates:** V. Sethu Madhava…; V. Dyu…; +2 more

## Timeline

- **2013-03-25 — CDR Empowered Group…**: The CDR Empowered Group…
- **2013-03-28 — Letter of A…**: Letter of Approval issued by CDR cell to the…

## 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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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/splendid-metal-products-ltd-cp-ib-no666-7-hdb-2018-037973ef