# State Bank of India vs. Pangea Fabrics India Pvt Ltd

> NCLT judgment dated 2026-09-18. Citation: TCN-2026-NCLT-01032. State Bank of India Stressed Assets Management (Financial Creditor) filed a Company Petition…

- **Court:** NCLT
- **Order date:** 18 Sept 2026
- **Citation:** TCN-2026-NCLT-01032
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/state-bank-of-india-stressed-assets-management-vs-ms-pangea-fabrics-india-privat-8x29m

## Summary

### Background

State Bank of India Stressed Assets Management (Financial Creditor) filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s Pangea Fabrics India Private Limited (Corporate Debtor/Corporate Guarantor). The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to an alleged default in repayment of financial debt amounting to Rs. 732,17,43,319/- as of May 9, 2023. The Corporate Debtor had provided a corporate guarantee for credit facilities extended to Suryajyoti Spinning Mills Limited, the Principal Borrower, which was already under liquidation.

## Facts

State Bank of India Stressed Assets Management (Financial Creditor) filed a Company Petition under Section 7 of the IBC against M/s Pangea Fabrics India Private Limited (Corporate Debtor/Respondent No.1).

The petition seeks initiation of CIRP against Respondent No.1 for an alleged default in repayment of financial debt amounting to Rs. 732,17,43,319/- as on 09.05.2023.

M/s Pangea Fabrics India Private Limited is the Corporate Guarantor for credit facilities granted to Suryajyoti Spinning Mills Limited (Principal Borrower/Respondent No.2).

The Principal Borrower, Suryajyoti Spinning Mills Limited, is under liquidation pursuant to an order dated 18.04.2023.

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## Issues and analysis

### Issue 1: Whether the financial facilities availed by the Principal Borrower constitute a "financial …

**Ratio:** Section 5(8)(i) of the IBC defines a liability in respect of any guarantee or indemnity

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**Reasoning:** The Principal Borrower availed various financial facilities (Rupee Term Loans, Foreign

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**Interpretation:** The subsequent restructuring of the loan accounts does not alter the

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**Application:** The financial facilities constitute a financial debt, Respondent No.1 is a

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## Parties

- **Judges:** SHRI. RAJEEV…; SHRI. SANJA…
- **Appellants:** State Bank of…
- **Respondents:** M/s Pangea…; Suryajyoti…
- **Other parties:** Committee of…; Kaspa Venu…; +1 more
- **Advocates:** Mr.V.V.S.…; Sagarika…; +2 more

## Timeline

- **2013-03-27 — Security Trustee…**: The Security Trustee Agreement was dated, in favour of SBICAP Trustee Company Limited for…
- **2013-06-27 — Corporate Guarantee…**: M/s Pangea Fabrics India Private Limited (Respondent No.1) executed the Corporate…

## 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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