# In the matter of K B SPONGE IRON LIMITED

> NCLT judgment dated 2026-01-13. Citation: TCN-2026-NCLT-00059. 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-00059
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/k-b-sponge-iron-limited-9eff5ff1

## Summary

### Background

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

## Facts

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

K.B. Sponge Iron Limited defaulted on the repayment of the debt, with the date of default being 04.02.2024.

HDFC Bank issued a demand notice to K.B. Sponge Iron Limited and the Personal Guarantors on 09.04.2024.

K.B. Sponge Iron Limited submitted a restructuring proposal to HDFC Bank, which was rejected.

HDFC Bank declared the loan accounts of K.B. Sponge Iron Limited as NPA on 04.02.2024.

K.B. Sponge Iron Limited filed a SARFAESI Application before the Debts Recovery Tribunal No. 1, Kolkata.

HDFC Bank also instituted three separate applications under Section 95 of the IBC Code 2016 against Ramesh Kumar Kejriwal, Aditya Kejriwal and Vishal Kejriwal.

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## Issues and analysis

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

**Ratio:** The Tribunal found that Mr. Debojit Mukharjee, Senior Manager, was duly authorized to

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**Reasoning:** A copy of the Resolution/Authorisation

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**Interpretation:** The Tribunal interpreted the authorization as sufficient evidence of the

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**Application:** The issue was answered against the

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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 sanctioned various credit…
- **2022-01-15 — Execution of Loan…**: The Corporate Debtor executed…

## 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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