# In the matter of Sharp Mint Limited (IB)-194(PB)-2023

> NCLT judgment dated 2023-05-15. Citation: TCN-2023-NCLT-03360. State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 15 May 2023
- **Citation:** TCN-2023-NCLT-03360
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sharp-mint-limited-ib-194pb-2023-e302c341

## Summary

### Background

State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Sharp Mint Limited, the Corporate Debtor. The petition was filed on 29.01.2023. Prior to filing, an advance notice was served to the Corporate Debtor via email on 29.01.2023. The Corporate Debtor had approached the Petitioner for various loan facilities and was part of a consortium. The Corporate Debtor failed to adhere to financial discipline, leading to loan accounts being classified as NPA on 31.03.2018. Despite this, the Corporate Debtor did not make payments, prompting the Financial Creditor to issue a legal demand notice on 07.06.2019. SARFAESI proceedings were also initiated on 31.08.2022.

## Facts

State Bank of India (SBI), the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Sharp Mint Limited, the Corporate Debtor. The petition was filed on 29.01.2023. Prior to this, an advance notice was served to the Corporate Debtor via email on 29.01.2023. Sharp Mint Limited had approached SBI, as part of a consortium, for various loan facilities starting in December 2011. SBI granted credit facilities to Sharp Mint Limited with a credit limit of Rs. 1012 Crores in December 2011, enhanced to Rs. 1382 crores in October 2012, and further to Rs. 1408 crores in March 2014, and Rs. 1469 crores in October 2015. The Corporate Debtor also received a corporate

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## Issues and analysis

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

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The court considered the documents presented by the Petitioner, including loan

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**Interpretation:** Section 7 of the IBC provides the mechanism for financial creditors to initiate

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**Application:** The court applied Section 7 of the IBC to the facts of the case, finding that

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## Parties

- **Judges:** Ramalingam…; SH. ATUL CHATURVED…
- **Appellants:** State Bank of…
- **Respondents:** Sharp Mint…

## Timeline

- **2011-12-01 — Loan Req…**: Corporate Debtor approached the Petitioner…
- **2011-12-15 — Loan Documents…**: Loan Documents executed between the Petitioner and Corporate Debtor, granting credit…

## 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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