# State Bank of India vs. Debpara Tea Company Limited

> NCLT judgment dated 2026-10-14. Citation: TCN-2026-NCLT-01261. State Bank of India (Financial Creditor/Applicant) filed a Company Petition under Section 7 of…

- **Court:** NCLT
- **Order date:** 14 Oct 2026
- **Citation:** TCN-2026-NCLT-01261
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/debpara-tea-company-limited-emynk

## Summary

### Background

State Bank of India (Financial Creditor/Applicant) filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Debpara Tea Company Limited (Corporate Debtor/Respondent) to initiate Corporate Insolvency Resolution Process (CIRP) due to a default in repayment of a financial debt amounting to Rs. 17,49,52,268/-. The Corporate Debtor had availed credit facilities from the Financial Creditor, which were subsequently reviewed, renewed, and enhanced. Despite part payments, the Corporate Debtor failed to repay the principal and interest, leading to its account being classified as a Non-Performing Asset (NPA). The Financial Creditor issued a demand notice and also filed an application before the Debts Recovery Tribunal for recovery.

## Facts

State Bank of India (Financial Creditor/Applicant) filed a company petition under Section 7 of the IBC against Debpara Tea Company Limited (Corporate Debtor/Respondent).

The application seeks to initiate Corporate Insolvency Resolution Process (CIRP) due to a default in repayment of a financial debt amounting to Rs. 17,49,52,268/-.

The Corporate Debtor approached the Financial Creditor in 2020 for credit facilities to upgrade its unit with modern technology.

The Corporate Debtor passed a Board Resolution on 08.10.2020, approving the availing of credit facilities and the takeover of existing facilities from Federal Bank.

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is maintainable in law and facts, and not …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) is an independent statutory provision with an

…

**Reasoning:** The NCLT's scope of enquiry under Section 7 is limited to ascertaining the existence of a

…

**Interpretation:** The NCLT interprets Section 7 as a mechanism to initiate a resolution process

…

**Application:** The Corporate Debtor's contention that the application was filed with an

…

## Parties

- **Judges:** BIDISHA BANERJEE,…; REKHA KANTILAL…
- **Appellants:** State Bank of…
- **Respondents:** Debpara Tea…
- **Other parties:** Committee of…; Anil Ag…
- **Advocates:** Siddhanth Makkar,…; Shaunak Mitra,…; +3 more

## Timeline

- **2020 — Credit Facilities…**: Corporate Debtor approached the Financial Creditor for credit facilities to upgrade its…
- **2020-10-08 — Board Resolution &…**: Corporate Debtor passed a Board Resolution approving credit facilities and takeover of…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-kolkata/debpara-tea-company-limited-emynk