# In the matter of Aban Offshore Limited

> NCLT judgment dated 2025-09-01. Citation: TCN-2025-NCLT-01399. Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Sept 2025
- **Citation:** TCN-2025-NCLT-01399
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/aban-offshore-limited-c31ba65b

## Summary

### Background

Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Aban Offshore Limited, the Corporate Debtor, due to a default on a financial debt. The Corporate Debtor had availed credit facilities and failed to service the debt, leading to the account being classified as NPA. The Financial Creditor sought initiation of Corporate Insolvency Resolution Process (CIRP).

## Facts

Punjab National Bank sanctioned a loan to Aban Offshore Limited, a company engaged in offshore drilling.

The Corporate Debtor availed credit facilities from multiple lender banks, including SBI, ICICI Bank Ltd, IOB, State Bank of Mysore, IDBI Bank Ltd, LIC, LVB Ltd, and 3i Infotech Trusteeship Services Ltd.

The account was classified as NPA on 02.05.2017, and the outstanding amount as of 15.08.2024 was Rs.1062,86,03,208.45.

The Corporate Debtor executed loan and security documents in favor of the Financial Creditor and Security Trustee.

The Corporate Debtor mortgaged property in Tirunelveli District as security for the loan.

The Financial Creditor issued demand notices under Section 13(2) of SARFAESI Act and possession notices under 13(4) of SARFAESI Act.

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## Issues and analysis

### Issue 1: Whether a financial debt exists and whether the …

**Ratio:** Section 7(5) of the IBC requires the Adjudicating Authority to be satisfied that a

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**Reasoning:** The Financial Creditor provided documentary evidence, including loan agreements, balance

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**Interpretation:** The Adjudicating Authority interpreted Section 7(5) to mean that if a debt and

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**Application:** The Adjudicating Authority applied this interpretation to the facts of the case

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Punjab National…
- **Respondents:** Aban Offsho…
- **Other parties:** Headway Resolution…
- **Advocates:** M.L. Ga…; Arun K…; +7 more

## Timeline

- **2024-08-21 — Petition…**: Punjab National Bank filed the…
- **2017-05-02 — NPA Decla…**: The loan account of the Corporate…

## 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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