# In the matter of Select Galva India Private Limited IBA-876-2020

> NCLT judgment dated 2022-10-12. Citation: TCN-2022-NCLT-00763. The State Bank of India, acting as the Financial Creditor, filed an application under Section 7…

- **Court:** NCLT
- **Order date:** 12 Oct 2022
- **Citation:** TCN-2022-NCLT-00763
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/select-galva-india-private-limited-iba-876-2020-da86bddc

## Summary

### Background

The State Bank of India, acting as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Select Galva India Private Limited, the Corporate Debtor. The Financial Creditor sought the admission of the application, declaration of moratorium, and appointment of an Interim Resolution Professional (IRP).

## Facts

State Bank of India (SBI), the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Select Galva India Private Limited, the Corporate Debtor. The Financial Creditor claimed a debt of Rs. 25,23,24,918.13 as on 28.02.2018, with the date of default being 29.11.2017. The Corporate Debtor's account was classified as NPA on 29.11.2017. The Financial Creditor had sanctioned credit facilities to the Corporate Debtor, with the last sanction on 30.07.2016, secured by hypothecation of stocks, receivables, and current assets. The Financial Creditor had also obtained a Debt Recovery Certificate dated 23.01.2020. The Corporate Debtor contended that the

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** The Supreme Court in Dena Bank Vs. C. Shivakumar Reddy and Anr held that a fresh right

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**Reasoning:** The Adjudicating Authority considered the Corporate Debtor's argument that the

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**Interpretation:** The interpretation of the law is that the limitation period for initiating

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**Application:** In this case, the Financial Creditor obtained a recovery certificate on

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## Parties

- **Judges:** BACHU VENKAT…; SAMEER…
- **Appellants:** State Bank of…
- **Respondents:** M/S. SELECT GALVA…

## Timeline

- **2020-08-10 — Application…**: State Bank of India filed an application under Section 7 of the IBC, 2016, to initiate…
- **2020-01-23 — Debt Recovery…**: The Applicant Financial Creditor obtained a Debt Recovery Certificate dated 23.01.2020 in…

## 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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