# In the matter of Surya Pharmaceutical Limited C.P. No. (IB)-904(PB)-2018

> NCLT judgment dated 2018-10-08. Citation: TCN-2018-NCLT-00633. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 Oct 2018
- **Citation:** TCN-2018-NCLT-00633
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/surya-pharmaceutical-limited-cp-no-ib-904pb-2018-9582cfc1

## Summary

### Background

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Surya Pharmaceutical Limited. The application was based on the corporate debtor's default on financial facilities availed from the State Bank of India and other consortium banks. The corporate debtor's account was declared a Non-Performing Asset (NPA) on 18.04.2012. Despite recall notices, the corporate debtor failed to clear the outstanding debt, leading to the filing of this application.

## Facts

State Bank of India (SBI), acting as the 'Financial Creditor', filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Surya Pharmaceutical Limited, the 'Corporate Debtor'. The Corporate Debtor is a company registered under the Companies Act, 1956, involved in manufacturing Active Pharmaceutical Ingredients (API). The Corporate Debtor's account was declared a Non-Performing Asset (NPA) on 18.04.2012. The total amount in default as of 10.07.2018 was Rs. 1571,09,44,381.60, including uncharged interest from 18.08.2012 to 10.07.2018. The Financial Creditor presented various documents, including sanction letters, loan agreements, and security details, to support its

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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, outlines the procedure for

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**Reasoning:** The Adjudicating Authority examined the application and found that it was complete as per

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**Interpretation:** Section 7 requires the Adjudicating Authority to be satisfied that a default

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**Application:** In this case, the Adjudicating Authority was satisfied that the application was

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## Parties

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

## Timeline

- **2012-04-18 — Account Decla…**: The account of the Corporate Debtor was declared as Non-Performing Asset (NPA) by the…
- **2013-07-08 — Recall Notice…**: The Financial Creditor issued a recall notice to the Corporate Debtor under Section 13(2)…

## 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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