# In the matter of Super Shiv Shakti Chemicals Private Limited CP No.(IB)-59-7-JPR-2019

> NCLT judgment dated 2020-01-10. Citation: TCN-2020-NCLT-02368. Oriental Bank of Commerce filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 Jan 2020
- **Citation:** TCN-2020-NCLT-02368
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/super-shiv-shakti-chemicals-private-limited-cp-noib-59-7-jpr-2019-f8cfb505

## Summary

### Background

Oriental Bank of Commerce filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Super Shiv Shakti Chemicals Private Limited, claiming to be a Financial Creditor. The application seeks initiation of the Corporate Insolvency Resolution Process (CIRP) due to default in repayment of loan amount. The applicant is a banking company constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980. The respondent, Super Shiv Shakti Chemicals Private Limited, is a private limited company engaged in the manufacturing/supply of explosives. The respondent had availed various credit facilities from the applicant, including cash credit and term loans. The loan accounts of the corporate debtor were classified as NPA

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## Facts

Oriental Bank of Commerce (the Applicant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Super Shiv Shakti Chemicals Private Limited (the Respondent/Corporate Debtor). The Applicant claimed to be a Financial Creditor. The Respondent is a private limited company engaged in manufacturing/supply of explosives. The Respondent availed credit facilities from the Applicant, including a Cash Credit Facility of Rs. 5,00,00,000/- sanctioned on 09.01.2013, Term Loan I of Rs. 3,64,00,000/- sanctioned on 17.10.2013, and Term Loan II of Rs. 10,00,00,000/- sanctioned on 17.02.2015. The Loan Accounts were classified as NPA on 30.03.2017. The Applicant issued a notice under Section 13(2) of the SARFAESI Act, 2002, demanding Rs.

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## Issues and analysis

### Issue 1: Whether the application filed by Oriental Bank of Commerce under Section 7 of the IBC is …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The court perused the relevant documents and found them to be in order. The Registered

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

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**Application:** The Applicant, being a financial creditor, has demonstrated the existence of a

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## Parties

- **Judges:** P.S.N. P…; RAGHU N…; +1 more
- **Appellants:** Oriental Bank of…
- **Respondents:** Super Shiv Shakti…

## Timeline

- **2013-01-09 — Sanction of Cash Credit…**: Cash Credit Facility of Rs.…
- **2013-10-17 — Sanction of Te…**: Term Loan I of Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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