# State Bank of India vs. Neol Pharma (India) Pvt Ltd

> NCLT judgment dated 2026-07-23. Citation: TCN-2026-NCLT-00631. State Bank of India (Financial Creditor) filed a petition under Section 7 of the IBC, 2016, to…

- **Court:** NCLT
- **Order date:** 23 Jul 2026
- **Citation:** TCN-2026-NCLT-00631
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/state-bank-of-india-vs-neol-pharma-6k167

## Summary

### Background

State Bank of India (Financial Creditor) filed a petition under Section 7 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Noel Pharma (India) Private Limited (Corporate Debtor). The default in repayment of a financial debt amounted to Rs.79,10,35,587.57 as on 31.10.2024, with the date of default being 30.06.2018. The Corporate Debtor had availed various credit facilities from the Financial Creditor since 2007, which were subsequently enhanced and secured by personal guarantees and mortgages. The accounts were classified as Non-Performing Assets (NPA) on 27.09.2018. Despite multiple One Time Settlement (OTS) proposals and negotiations, including part-payments and release of some mortgaged properties, the Corporate Debtor failed

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## Facts

State Bank of India (Financial Creditor) filed a petition under Section 7 of the IBC, 2016, seeking initiation of CIRP against M/s. Noel Pharma (India) Private Limited (Corporate Debtor).

The Corporate Debtor defaulted on a financial debt of Rs.79,10,35,587.57 as on 31.10.2024, with the Date of Default being 30.06.2018.

The Corporate Debtor, initially a proprietorship owned by Mr. S. Venkataiah, converted to a private limited company on 15.11.2012 and later a public limited company on 01.12.2017.

The Financial Creditor sanctioned various credit facilities to the Corporate Debtor, initially Rs.8.00 crores in 2007, which were subsequently enhanced to Rs.35.48 crores by 2012 and further to Rs.42.89 crores by December 2012.

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has established the existence of a financial debt and the occurrence …

**Ratio:** The Financial Creditor established the existence of a financial debt within the meaning

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**Reasoning:** The Corporate Debtor availed various credit facilities, executed loan and security

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**Interpretation:** The scope of enquiry under Section 7 of the Code is confined to ascertaining

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**Application:** The Tribunal found that the jurisdictional facts of debt and default were

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** State Bank of…
- **Respondents:** M/s. Noel Pharma…; Neol Pharma…
- **Other parties:** S. Venka…; G. Ma…; +1 more
- **Advocates:** Deepak Bhattacharj…; Niharika A…; +2 more

## Timeline

- **2007-05-26 — Initial Credit…**: Financial Creditor initially sanctioned fund-based and non-fund-based credit facilities…
- **2012-01-20 — Credit Facilities…**: Credit facilities were enhanced to…

## 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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