# In the matter of Advantge Overseas Private Limited

> NCLT judgment dated 2023-11-10. Citation: TCN-2023-NCLT-00751. The State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 10 Nov 2023
- **Citation:** TCN-2023-NCLT-00751
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/advantge-overseas-private-limited-60689bf8

## Summary

### Background

The State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Advanatge Overseas Private Limited, claiming a default of INR 2730,51,66,175.58 as of February 28, 2023. The Corporate Debtor is a private company incorporated on October 18, 2004. The Financial Creditor had granted facilities to the Corporate Debtor, and various agreements and guarantees were executed to secure these amounts. The Corporate Debtor failed to adhere to the terms of the facility, leading to the loan account being classified as a Non-Performing Asset (NPA). The Financial Creditor issued a legal notice on January 7, 2019, and subsequently filed an OA before the Debts Recovery Tribunal

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## Facts

State Bank of India (SBI), the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Advanatge Overseas Private Limited, the Corporate Debtor. The Corporate Debtor was incorporated on October 18, 2004. SBI had extended financial facilities to the Corporate Debtor, secured by various agreements and guarantees. The Corporate Debtor defaulted on its obligations, leading to its loan account being classified as a Non-Performing Asset (NPA). The total outstanding amount was INR 2730,51,66,175.58 as of February 28, 2023. SBI issued a legal notice on January 7, 2019, demanding repayment. Subsequently, SBI filed an OA before the Debts Recovery Tribunal (DRT), Jabalpur,

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is maintainable under Section 7 of the …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The NCLT found that the Financial Creditor had provided sufficient evidence to

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The NCLT applied Section 7 to the facts of the case, noting that the Financial

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** State Bank of…
- **Respondents:** Advanatge…
- **Advocates:** Gaurav…; Feroze…; +6 more

## Timeline

- **2004-10-18 — Incorpor…**: Corporate Debtor, Advanatge…
- **2012-11-01 — Approach for Financial…**: Corporate Debtor approached the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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