# In the matter of K B SPONGE IRON LIMITED

> NCLT judgment dated 2026-01-13. Citation: TCN-2026-NCLT-00058. HDFC Bank Limited, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 13 Jan 2026
- **Citation:** TCN-2026-NCLT-00058
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/k-b-sponge-iron-limited-06ea2a4d

## Summary

### Background

HDFC Bank Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against K.B. Sponge Iron Limited, the Corporate Debtor, due to default in repayment of credit facilities.

## Facts

HDFC Bank Limited sanctioned credit facilities amounting to Rs 16,31,84,572.00 to K.B. Sponge Iron Limited.

The Corporate Debtor defaulted in the payment of the debt on 04.02.2024.

A Demand Notice was issued by A.K. Singh & Associates on behalf of the Applicant Bank on 09.04.2024 to the Corporate Debtor and the Personal Guarantors.

The outstanding amount as on 05.06.2024 was Rs. 16,17,40,701.72/-.

The applicant proposed the name of Sushanta Kumar Choudhury as Interim Resolution Professional.

The respondent claimed that the present petition is filed as an arm twisting method with no intent of any resolution of the alleged corporate debtor.

The respondent submitted a restructuring proposal vide letter dated 24.01.2024 to the Petitioner bank, which was refused.

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## Issues and analysis

### Issue 1: Whether the person who filed the present application has authority to file and maintain the present …

**Ratio:** The respondent's plea that the present petition has been filed without any authority is

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**Reasoning:** Mr. Debojit Mukharjee, Senior Manager, Department For Special Operations Jardine House,

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**Interpretation:** The Tribunal found that the applicant was duly authorized to file the

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**Application:** The issue was answered

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## Parties

- **Judges:** Labh S…; Rekha Kantilal…
- **Appellants:** HDFC Bank L…
- **Respondents:** K.B. Sponge Iron…
- **Other parties:** Sushanta Kumar…
- **Advocates:** Shaunak…; Tannya Ba…; +4 more

## Timeline

- **2021-12-01 — Sanction of Credit…**: HDFC Bank Limited sanctioned various credit facilities amounting to Rs 16,31,84,572.00 to…
- **2022-01-15 — Execution of Loan and…**: The Corporate Debtor executed various loan and security documents including Term Loan…

## 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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