# In the matter of Techno Electronics Ltd. CP (IB)-512-I&BP-MB-2018

> NCLT judgment dated 2018-08-31. Citation: TCN-2018-NCLT-00841. State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 31 Aug 2018
- **Citation:** TCN-2018-NCLT-00841
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/techno-electronics-ltd-cp-ib-512-ibp-mb-2018-5df3d664

## Summary

### Background

State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking Corporate Insolvency Resolution Process (CIRP) against Techno Electronics Limited, the 'Corporate Debtor'. The petition was based on the Corporate Debtor's default in repayment of various facilities granted by State Bank of India and its associate banks. The Corporate Debtor was a co-obligor to a Rupee Term Loan agreement entered into between consortium banks including SBI, Videocon Industries Limited and its 12 group companies. The petitioner claimed that the Corporate Debtor defaulted on 31.01.2017 to the extent of Rs. 456.90 crores under the Rupee Term Loan Agreement and also committed default under the SBI Working Capital Facility Agreement on 30.04.2017 to the

…

## Facts

State Bank of India (SBI) and its associate banks granted various credit facilities to Techno Electronics Limited (Corporate Debtor). The Corporate Debtor defaulted on 31.01.2017 to the extent of Rs. 456.90 crores under the Rupee Term Loan Agreement and also committed default under the SBI Working Capital Facility Agreement on 30.04.2017 to the extent of Rs. 14.15 crores, thereby the entire outstanding amount of Rs. 3207.52 crores becoming payable immediately. SBI, along with its associate banks, had entered into a Rupee Facility Agreement on 31.05.2010 as amended by the Agreement of Modification dated 30.08.2010 with Videocon Telecommunications Limited (VTL). The Corporate Debtor was a co-obligor to a Rupee Term Loan agreement entered into between consortium banks

…

## Issues and analysis

### Issue 1: Whether the petition filed by State Bank of India under Section 7 of the Insolvency and Bankruptcy …

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

…

**Reasoning:** The Tribunal found that the Corporate Debtor had defaulted in its repayment obligations

…

**Interpretation:** Section 7 provides the mechanism for financial creditors to initiate CIRP

…

**Application:** The Tribunal applied Section 7 to the facts of the case and found that SBI, as

…

## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** State Bank of…
- **Respondents:** Techno Electronics…

## Timeline

- **2017-01-31 — Default by Corporate…**: Corporate Debtor defaulted in making payments under the Rupee Term Loan Agreement to the…
- **2017-04-30 — NPA Decla…**: Account of Videocon Industries Limited was declared as NPA and the first date of default…

## 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)

---

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/techno-electronics-ltd-cp-ib-512-ibp-mb-2018-5df3d664