# In the matter of Kingston Paptech Private Limited

> NCLT judgment dated 2024-03-07. Citation: TCN-2024-NCLT-02153. The case originates from an application filed on 2022-02-10 by State Bank of India (later Raj…

- **Court:** NCLT
- **Order date:** 7 Mar 2024
- **Citation:** TCN-2024-NCLT-02153
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kingston-paptech-private-limited-05fc692f

## Summary

### Background

The case originates from an application filed on 2022-02-10 by State Bank of India (later Raj Radhe Finance Ltd.) against Kingston Paptech Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) due to defaulted payment of Rs. 50,44,56,716.35. Initially, a notice was issued to the respondent, but no one appeared on their behalf. Subsequently, Raj Radhe Finance Limited filed an application for substitution in place of State Bank of India as the financial creditor. A restoration application was filed and allowed, and fresh notice was issued to the respondent through paper publication. The respondent remained absent, leading to ex-parte proceedings.

## Facts

On 2022-02-10, State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Kingston Paptech Private Limited, seeking initiation of CIRP due to a default of Rs. 50,44,56,716.35. The corporate debtor, Kingston Paptech Private Limited, was incorporated on 2008-12-11. Initially, notice was served to the respondent, but no one appeared. Subsequently, Raj Radhe Finance Limited was substituted for State Bank of India as the financial creditor. The respondent was served through paper publication but remained absent. The applicant and respondent reached a settlement during the pendency of the petition, evidenced by an OTS letter dated 2024-01-08, which novated the debt. The applicant filed an affidavit along with a copy of the

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** When a settlement is reached between the parties during the pendency of a petition under

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**Reasoning:** The court reasoned that the settlement reached between the parties, evidenced by the OTS

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**Interpretation:** The interpretation of the law is that the IBC process is primarily for

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**Application:** In this case, the OTS letter dated 2024-01-08 demonstrated that the applicant

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Raj Radhe Finance…
- **Respondents:** Kingston Paptech…; Kingston Paptech…
- **Advocates:** Noopur…

## Timeline

- **2022-02-10 — Application…**: State Bank of India filed an application under Section 7 of the IBC against Kingston…
- **2022-03-14 — Notice I…**: The court issued a…

## 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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