# In the matter of Supertech Limited IB-204(ND)-2021

> NCLT judgment dated 2022-03-25. Citation: TCN-2022-NCLT-03519. The case involves an application filed by Union Bank of India under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 25 Mar 2022
- **Citation:** TCN-2022-NCLT-03519
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/supertech-limited-ib-204nd-2021-28c3f255

## Summary

### Background

The case involves an application filed by Union Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Supertech Limited due to an alleged default on a loan amount. Supertech approached various financial institutions, including Union Bank of India, in 2013 for a credit facility of Rs. 350 Crores, with Union Bank's exposure being Rs. 150 Crores. The loan was intended to finance the Eco Village II project. Supertech defaulted on repayments, leading to the loan account being classified as a Non-Performing Asset (NPA). Union Bank issued notices under Section 13(2) of the SARFAESI Act but Supertech failed to repay the debt.

## Facts

In 2013, M/s Supertech Limited approached various financial institutions, including Union Bank of India, for a credit facility of Rs. 350 Crores to finance its Eco Village II project. Union Bank's exposure was Rs. 150 Crores. A loan agreement was executed, and Supertech deposited title deeds as security. Later, Supertech approached Union Bank and Bank of Baroda for an additional credit facility of Rs. 200 Crores, with Union Bank's exposure being Rs. 100 Crores. Supertech defaulted on its repayment obligations, leading to the loan account being classified as an NPA. Union Bank issued notices under Section 13(2) of the SARFAESI Act. As of 31.01.2021, the outstanding amount was Rs. 431,92,53,302. Supertech contested the application, claiming the petition was filed without

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## Issues and analysis

### Issue 1: Whether the application filed by Union Bank of India under Section 7 of the Insolvency and …

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

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**Reasoning:** The Tribunal considered the arguments made by both parties and examined the documents

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**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to trigger

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

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI. RAHUL…
- **Appellants:** Union Bank of…
- **Respondents:** M/s. Supertech…

## Timeline

- **2013-01-01 — Loan Appli…**: Supertech approached various financial institutions, including Union Bank of India, for a…
- **2013-10-19 — Sanction…**: Sanction letter issued to Supertech for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 2(a) — Application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-2)

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