# In the matter of Sunstar Overseas Limited C.P. No. IB-265(PB)-2018

> NCLT judgment dated 2018-07-20. Citation: TCN-2018-NCLT-01102. ICICI Bank Limited, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 20 Jul 2018
- **Citation:** TCN-2018-NCLT-01102
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sunstar-overseas-limited-cp-no-ib-265pb-2018-5910e739

## Summary

### Background

ICICI Bank Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against M/s. Sunstar Overseas Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor had defaulted on loan facilities, with the total amount in default as of 31.01.2018 being Rs. 875,976,294.90. The Corporate Debtor raised several objections, including the maintainability of the petition, the completeness of the application, and the Financial Creditor's participation in a Joint Lenders' Forum (JLF).

## Facts

ICICI Bank Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Sunstar Overseas Limited (Corporate Debtor). The Financial Creditor claimed a default of Rs. 875,976,294.90 as of 31.01.2018. The Corporate Debtor raised objections, arguing the petition was not maintainable, the application was incomplete, and the Financial Creditor was part of a consortium and a Joint Lenders' Forum (JLF). The Financial Creditor had proposed Mr. Gian Chand Narang as the Interim Resolution Professional (IRP). The Corporate Debtor's account was declared a Non-Performing Asset (NPA) on 31.12.2015. The Financial Creditor had also approached the Debts Recovery

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The Tribunal found that the Financial Creditor had submitted sufficient evidence to prove

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

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

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** ICICI Bank…
- **Respondents:** Sunstar Overseas…; M/s. Sunstar…

## Timeline

- **1994-01-05 — Incorporation of…**: ICICI Bank Limited was…
- **1995-01-06 — Incorporation of…**: M/s. Sunstar Overseas Limited was…

## 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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