# In the matter of Jayaswal Neco Industries Limited IA No. 2465-2021 in CP(IB)1828-MB-C-II-2017

> NCLT judgment dated 2022-06-10. Citation: TCN-2022-NCLT-02300. The case involves a petition filed by State Bank of India (SBI) under Section 7 of the IBC…

- **Court:** NCLT
- **Order date:** 10 Jun 2022
- **Citation:** TCN-2022-NCLT-02300
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jayaswal-neco-industries-limited-ia-no-2465-2021-in-cpib1828-mb-c-ii-2017-61ef596e

## Summary

### Background

The case involves a petition filed by State Bank of India (SBI) under Section 7 of the IBC Code, 2016, against Jayaswal Neco Industries Ltd. Subsequently, ACRE-54-Trust, acting through its trustee Assets Care and Reconstruction Enterprise Limited (ACRE), filed an application seeking to be substituted as the applicant in place of SBI, as SBI had assigned its loan exposure to ACRE-54-Trust. The Corporate Debtor had previously filed a Writ Petition before the High Court challenging RBI's actions regarding the restructuring scheme, which was dismissed. The Corporate Debtor then challenged the High Court Order before the Supreme Court. A Restructuring Support Agreement stipulated that the Corporate Debtor would withdraw the Supreme Court proceedings and the insolvency

…

## Facts

State Bank of India (SBI) initiated insolvency proceedings against Jayaswal Neco Industries Ltd. under Section 7 of the IBC Code, 2016. SBI later assigned its loan exposure to ACRE-54-Trust, acting through its trustee Assets Care and Reconstruction Enterprise Limited (ACRE). ACRE-54-Trust then filed an application with the NCLT to be substituted as the applicant in place of SBI. Prior to this, Jayaswal Neco Industries Ltd. had filed a Writ Petition before the Bombay High Court challenging RBI's actions related to the restructuring scheme, which was dismissed. The Corporate Debtor then appealed to the Supreme Court. A Restructuring Support Agreement was in place, requiring the Corporate Debtor to withdraw the Supreme Court proceedings and the insolvency proceedings. The

…

## Issues and analysis

### Issue 1: Whether the application for substitution of ACRE-54-Trust in place of State Bank of India as the …

**Ratio:** The assignment of debt from SBI to ACRE-54-Trust allows ACRE-54-Trust to step into the

…

**Reasoning:** The court considered the assignment agreement between SBI and ACRE-54-Trust, which

…

**Interpretation:** The interpretation is that the assignment of debt effectively transfers the

…

**Application:** Since SBI assigned its debt to ACRE-54-Trust, ACRE-54-Trust has the right to be

…

## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Respondents:** Jayaswal Neco…

## Timeline

- **2017-01-01 — Initial Pe…**: CP(IB)1828(MB)2017 filed by State Bank of…
- **2018-01-05 — Writ Petition by…**: Corporate Debtor filed a Writ Petition…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jayaswal-neco-industries-limited-ia-no-2465-2021-in-cpib1828-mb-c-ii-2017-61ef596e