# In the matter of Torus India Limited TCP (IB) No. 62-7-AMR-2019 {CP(IB) No. 415-7-HDB/2018}

> NCLT judgment dated 2019-12-12. Citation: TCN-2019-NCLT-00217. The Financial Creditor (Stressed Assets Stabilisation Fund) initiated Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 12 Dec 2019
- **Citation:** TCN-2019-NCLT-00217
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/torus-india-limited-tcp-ib-no-62-7-amr-2019-cpib-no-415-7-hdb2018-dd09d330

## Summary

### Background

The Financial Creditor (Stressed Assets Stabilisation Fund) initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor (Torus India Ltd) under Section 7 of the Insolvency and Bankruptcy Code, 2016. Torus India Ltd was originally incorporated as Kinnera Steels Private Limited on 28.09.1984 and later converted to a Public Limited Company on 06.06.1996, changing its name on 31.12.1999. The company engaged in ferrous and non-ferrous metal businesses and obtained credit facilities from IDBI for project financing. IDBI granted two term loans on 19.09.1997 and 07.12.2001, totaling Rs. 7,06,00,000/-, but the Respondent defaulted. IDBI transferred the loans to the Petitioner on 30.09.2004. IDBI issued a Sale Notice on 06.09.2017 and a Possession

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## Facts

Torus India Ltd. was incorporated as Kinnera Steels Private Limited on 28.09.1984, later becoming a Public Limited Company on 06.06.1996 and changing its name on 31.12.1999. The company engaged in ferrous and non-ferrous metal businesses. It obtained credit facilities from IDBI for project financing, with two term loans granted on 19.09.1997 (Rs. 4,80,00,000/-) and 07.12.2001 (Rs. 2,26,00,000/-), totaling Rs. 7,06,00,000/-. The Respondent defaulted in repayment. IDBI transferred the loans and security interest to Stressed Assets Stabilisation Fund (the Petitioner) on 30.09.2004. IDBI issued a Sale Notice on 06.09.2017 and a Possession Notice on 10.08.2017. The Respondent filed S.A. No. 338/2017 before the DRT, Visakhapatnam, which set aside the notices on 16.07.2018.

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## Issues and analysis

### Issue 1: Whether the Petition is …

**Ratio:** A petition under Section 7 of the Insolvency and Bankruptcy Code can be filed within 3

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**Reasoning:** The DRT, Visakhapatnam, vide order dated 16.07.2018 set aside the Notice of Sale and

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**Interpretation:** The limitation period for filing a petition under Section 7 of the IBC is

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**Application:** The DRT order of 16.07.2018 set aside the earlier notices and allowed the

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## Parties

- **Judges:** Janab Mohammed…
- **Appellants:** Stressed Assets…
- **Respondents:** Torus India…; Torus Ind…

## Timeline

- **1984-09-28 — Incorpor…**: Torus India Ltd. was originally…
- **1996-06-06 — Conversion to Public…**: Kinnera Steels Private 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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