# In the matter of Advantge Overseas Private Limited

> NCLT judgment dated 2023-11-10. Citation: TCN-2023-NCLT-00743. 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-00743
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/advantge-overseas-private-limited-ceb96c28

## 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 Financial Creditor had extended various credit facilities to the Corporate Debtor, which were secured by hypothecation, guarantees, and mortgages. The Corporate Debtor defaulted on its repayment obligations, leading to the loan account being classified as NPA. An One Time Settlement (OTS) was agreed upon, but the Corporate Debtor failed to adhere to its terms. A judgment was passed by the DRT, but the Corporate Debtor still failed to pay the outstanding amount. The Financial Creditor argued

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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 10.18.2004. SBI had extended financial facilities to the Corporate Debtor, initially amounting to Rs. 10 crores in 2013, which was later enhanced to Rs. 51 crores in 2014 and further increased to Rs. 6249.50 crores in 2016. These facilities were secured through agreements, hypothecation of goods and assets, and guarantees from individuals and Asian Business Connections Private Limited (ABCPL). The Corporate Debtor defaulted on its repayment obligations, leading to its account

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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, finding 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 — Incorporation of…**: Advanatge Overseas Private…
- **2012-11-01 — Corporate Debtor…**: The 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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