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

> NCLT judgment dated 2022-03-25. Citation: TCN-2022-NCLT-03514. 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-03514
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/supertech-limited-ib-204nd-2021-cbd9c884

## 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 in settling an amount of Rs. 431,92,53,302 as on 31.01.2021. Supertech had approached various financial institutions, including Union Bank of India, in 2013 to avail a credit facility of Rs. 350 Crores, with Union Bank's exposure being Rs. 150 Crores. This loan was intended to part-finance the development of Supertech's Eco Village II project. Subsequently, Supertech approached Union Bank and Bank of Baroda for additional financing for Phase-II of the project, resulting in a second credit facility of Rs. 200 Crores, with Union

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## Facts

In 2013, Supertech approached financial institutions, including Union Bank of India, for a Rs. 350 Crore credit facility, with Union Bank's share being Rs. 150 Crores, to finance the Eco Village II project. A sanction letter was issued on 2013-10-19, revised on 2013-12-16, granting Rs. 150 Crores. Supertech deposited property title deeds as security. Later, Supertech sought additional financing from Union Bank and Bank of Baroda for Phase-II, securing Rs. 200 Crores, with Union Bank's exposure at Rs. 100 Crores. A Construction Facility Agreement was entered on 2016-09-07. Supertech defaulted on repayments, leading to the loan accounts being classified as NPA. Notices under Section 13(2) of SARFAESI Act were issued on 2019-04-24 and 2019-04-23. Union Bank filed a

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## Issues and analysis

### Issue 1: Whether the requirements of Section 7 of the …

**Ratio:** Section 7 of the IBC requires the applicant to establish the existence of a financial

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**Reasoning:** The Tribunal found that the documents submitted by the Financial Creditor and the

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

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**Application:** In this case, the Tribunal found that the Financial Creditor had provided

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## Parties

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

## Timeline

- **2013-01-01 — Corporate Debtor Approached Financial…**: Supertech approached various financial institutions, including Union Bank of India, to…
- **2013-10-19 — Sanction Lette…**: Sanction letter issued…

## 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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