# In the matter of Bharath Infra Exports and Import Limited I.A. No. 571-2022 in CP (IB) No. 112-BB-2019

> NCLT judgment dated 2022-12-19. Citation: TCN-2022-NCLT-00112. The case pertains to a company petition filed by the State Bank of India against Bharath Infra…

- **Court:** NCLT
- **Order date:** 19 Dec 2022
- **Citation:** TCN-2022-NCLT-00112
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bharath-infra-exports-and-import-limited-ia-no-571-2022-in-cp-ib-no-112-bb-2019-9218000f

## Summary

### Background

The case pertains to a company petition filed by the State Bank of India against Bharath Infra Import & Exports Limited under Section 7 of the I&B Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to a default of Rs. 146,93,93,281.78. The Adjudicating Authority initially disposed of the petition with directions for reconciliation of accounts. Aggrieved by this order, the Financial Creditor appealed to the NCLAT, which directed the Adjudicating Authority to restore and admit the petition for CIRP.

## Facts

The State Bank of India filed a company petition against Bharath Infra Import & Exports Limited under Section 7 of the I&B Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The basis for the petition was a default of Rs. 146,93,93,281.78. Initially, the Adjudicating Authority disposed of the petition with directions for the Financial Creditor to reconcile accounts with the Corporate Debtor. The Financial Creditor appealed this decision to the NCLAT. The NCLAT directed the Adjudicating Authority to restore the petition and admit it for CIRP. Following the NCLAT's order, the Adjudicating Authority restored the petition, admitted it under Section 7 of the IBC, declared a moratorium under Section 14 of the Code, and appointed Mr.

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## Issues and analysis

### Issue 1: Whether the company petition filed by the Financial Creditor should be admitted for Corporate …

**Ratio:** Section 7 of the I&B Code, 2016 allows a financial creditor to initiate CIRP against

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**Reasoning:** The NCLAT, in its appellate jurisdiction, reviewed the initial order of the Adjudicating

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**Interpretation:** Section 7 of the I&B Code is interpreted to provide a mechanism for

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**Application:** The NCLAT's direction to restore and admit the petition under Section 7 was

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## Parties

- **Judges:** TMT. T.KRISHNAVALL…; SH. MANOJ KUMAR…
- **Appellants:** State Bank of…
- **Respondents:** Bharath Infra…; M/s. Bharath…
- **Advocates:** K.V Ompr…

## Timeline

- **2020-12-22 — Initial…**: Adjudicating Authority disposed of the company petition with directions for…
- **2022-11-28 — NCLAT Or…**: NCLAT directed the Adjudicating Authority to restore and admit the company petition for…

## 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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