# In the matter of Apex Steel Private Limited

> NCLT judgment dated 2023-10-10. Citation: TCN-2023-NCLT-01321. The Indian Overseas Bank, acting as the Financial Creditor, initiated a Section 7 application…

- **Court:** NCLT
- **Order date:** 10 Oct 2023
- **Citation:** TCN-2023-NCLT-01321
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/apex-steel-private-limited-25b9c4c3

## Summary

### Background

The Indian Overseas Bank, acting as the Financial Creditor, initiated a Section 7 application under the Insolvency and Bankruptcy Code (IBC), 2016, against Apex Steel Private Limited, the Corporate Debtor, for initiation of Corporate Insolvency Resolution Process (CIRP). The application was filed due to the Corporate Debtor's default in repaying loan and credit facilities advanced by the bank. The total amount claimed to be in default was Rs. 28,05,65,910/-, including unapplied interest as of April 30, 2022. The date of default was initially March 31, 2017, which was later extended to February 4, 2019, due to an order passed by the Debt Recovery Tribunal (DRT), Patna, in an appeal filed by the financial creditor. The DRT had ordered the Corporate Debtor to pay an

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## Facts

Indian Overseas Bank (IOB) advanced loans and credit facilities amounting to approximately Rs. 12 Crores to Apex Steel Private Limited. The loans were disbursed under loan account no. 148402000005176 for a principal amount of Rs. 12,64,08,553/- and loan account no. 12460000000103 for a principal amount of Rs. 3,80,742/-. The first credit sanction was made on April 4, 2011, for Rs. 5 Crore, which was later enhanced to Rs. 7 Crore on May 30, 2012, and further to Rs. 12 Crore on December 10, 2014. Apex Steel Private Limited defaulted on its EMI payments starting in August 2016, leading IOB to classify the account as Non-Performing Asset (NPA) on March 31, 2017. The total amount claimed to be in default was Rs. 28,05,65,910/- as of April 30, 2022, including unapplied

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## Issues and analysis

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

**Ratio:** The Adjudicating Authority's role is limited to examining whether there was default, the

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**Reasoning:** The court found that there was no denial from the respondent about the default, the

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**Interpretation:** The court interpreted Section 7 of the IBC to mean that if the criteria of

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**Application:** The court applied the ratio to the facts of the case and found that the

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Indian Overseas…
- **Respondents:** Apex Steel…

## Timeline

- **1999-07-19 — Incorporation of…**: Apex Steel Private Limited was…
- **2011-04-04 — First Credit…**: Indian Overseas Bank sanctioned a credit facility of Rs. 5 Crore to Apex Steel Private…

## 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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