# In the matter of Worlds Window Impex India Pvt.  Ltd. IB-376-(ND)-2020

> NCLT judgment dated 2021-12-23. Citation: TCN-2021-NCLT-00055. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 23 Dec 2021
- **Citation:** TCN-2021-NCLT-00055
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/worlds-window-impex-india-pvt-ltd-ib-376-nd-2020-c91f7ca6

## 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 Worlds Window Impex India Pvt. Ltd. The application was based on an alleged default in settling an amount of Rs. 516,17,95,970.00 as of 30.11.2019. Worlds Window Impex India Pvt Ltd, as a borrower, along with its guarantors, had approached SBI for various credit facilities, which were granted over several years. The company also signed and executed Revival Letters acknowledging the debt. SBI issued a legal demand notice on 12.12.2019, but the defaulters failed to liquidate the outstanding amount. The respondent contended that the application should be dismissed, alleging that the applicant had not

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## Facts

Worlds Window Impex India Pvt Ltd (Corporate Debtor) received credit facilities from State Bank of India (Financial Creditor) starting in 1997. These facilities were periodically enhanced and renewed. As of 30.11.2019, the outstanding amount was Rs. 516,17,95,970.00. The Corporate Debtor acknowledged the debt through revival letters. The Corporate Debtor admitted liabilities in its balance sheets up to March 31, 2018. SBI issued a legal demand notice on 12.12.2019. The Corporate Debtor's accounts were declared NPA on 15.05.2019. SBI holds collateral security. The Corporate Debtor claims lenders arbitrarily froze their accounts in January 2019, impacting operations. The Corporate Debtor submitted a one-time settlement proposal on 18.08.2020. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

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

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**Reasoning:** The Tribunal considered the arguments presented by both parties and reviewed the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The Tribunal found that the applicant, State Bank of India, had demonstrated

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI. RAHUL…
- **Appellants:** State Bank of…
- **Respondents:** Worlds Window…; M/s Worlds Window…

## Timeline

- **1997-01-01 — Initial Grant of Credit…**: Worlds Window Impex India Pvt Ltd initially granted credit facilities by the Applicant…
- **2005-03-05 — Credit Facilities…**: Worlds Window Impex India Pvt Ltd approached…

## 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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