# In the matter of Abhijeet Ferrotech Limited T.P (IBC) No. 02-CB-2022 (Earlier C.P (IB) No. 209-KB-2021)

> NCLT judgment dated 2023-03-21. Citation: TCN-2023-NCLT-04123. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 21 Mar 2023
- **Citation:** TCN-2023-NCLT-04123
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/abhijeet-ferrotech-limited-tp-ibc-no-02-cb-2022-earlier-cp-ib-no-209-kb-2021-16ab0181

## Summary

### Background

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Abhijeet Ferrotech Limited. The Corporate Debtor had approached the Financial Creditor for financial assistance to manufacture Ferro-Manganese and Silico-Manganese. The erstwhile State Bank of Travancore sanctioned credit facilities. The Corporate Debtor enjoyed the facility under a consortium arrangement. Subsequently, the Corporate Debtor requested restructuring due to business strain. A Master Restructuring Agreement was entered into, and credit facilities were restructured. The applicant enhanced the credit facilities. The FC disbursed amounts, but the Corporate Debtor neglected to pay

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## Facts

State Bank of India (SBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Abhijeet Ferrotech Limited. Abhijeet Ferrotech Limited approached SBI (formerly State Bank of Travancore) for financial assistance to manufacture Ferro-Manganese and Silico-Manganese. SBI sanctioned credit facilities to the tune of Rs. 99,00,00,000/- on 17.03.2012, which was renewed on 08.04.2013 for Rs. 89,46,00,000/-. The Corporate Debtor enjoyed the facility under a consortium arrangement since 30.09.2013. Due to business strain, the Corporate Debtor requested restructuring, leading to a Master Restructuring Agreement (MRA) dated 28.09.2013. The credit facilities were restructured on 14.02.2014

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## Issues and analysis

### Issue 1: Whether the proceeding of this petition is barred in view of the order passed by DRT-II, Kolkata in …

**Ratio:** The principle of res judicata and the applicability of Section 10 of the Code of Civil

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**Reasoning:** The NCLT reasoned that since the appeal against the DRT order was pending, the matter was

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**Interpretation:** The NCLT interpreted that the pendency of the appeal against the DRT order

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**Application:** The NCLT applied the principle of Section 10 of the Code of Civil Procedure by

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** State Bank of…
- **Respondents:** ABHIJEET FERROTECH…

## Timeline

- **2012-03-17 — Sanction…**: State Bank of Travancore sanctioned credit…
- **2013-04-08 — Renewal of Credit…**: Credit facility was renewed for additional 12 months at the revised limit of Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(11) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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