# State Bank of India vs. Buxa Dooars Tea Company (India) Limited

> NCLT judgment dated 2026-06-12. Citation: TCN-2026-NCLT-00562. State Bank of India, as the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 12 Jun 2026
- **Citation:** TCN-2026-NCLT-00562
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/state-bank-of-india-vs-buxa-dooars-tea-company-30zht

## Summary

### Background

State Bank of India, as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Buxa Dooars Tea Company (India) Limited, the Corporate Debtor. The Corporate Debtor had availed secured credit facilities from the Financial Creditor, which were renewed and enhanced over time. The Corporate Debtor defaulted on repayments, leading to its loan accounts being classified as Non-performing Assets on 14.03.2024. Despite demand notices issued by the Financial Creditor, the Corporate Debtor failed to pay the outstanding dues, which amounted to Rs. 9,03,57,078.00 as on 13.05.2025. The Corporate Debtor disputed the default, citing operational disruptions due to a

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## Facts

State Bank of India is the Financial Creditor and Applicant.

Buxa Dooars Tea Company (India) Limited is the Corporate Debtor, a public limited company engaged in producing tea.

The Corporate Debtor approached the Financial Creditor for financial assistance, and secured credit facilities for Rs. 17.50 Crore were sanctioned on 18.08.2012.

Credit facilities were renewed, revived, and enhanced over time, with several security documents executed.

The Financial Creditor also granted a FITL facility of Rs. 34,49,510/- to the Corporate Debtor due to COVID-19 financial distress.

In 2023, the Corporate Debtor was sanctioned enhanced credit facilities of Rs. 7.07 Crores by State Bank of India on 31.03.2023.

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## Issues and analysis

### Issue 1: Whether a default has occurred on …

**Ratio:** The Adjudicating Authority shall admit the application if it is satisfied that a default

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**Reasoning:** The sanction of credit limit is undisputed. Statements of Account placed on record

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**Interpretation:** A 'default' under Section 7 of the IBC requires a failure to pay a debt when

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**Application:** The Tribunal found that the Financial Creditor successfully established the

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## Parties

- **Judges:** BIDISHA BANERJEE,…; Cmde Siddharth…
- **Appellants:** State Bank of…
- **Respondents:** Buxa Dooars Tea…
- **Other parties:** Kanchan…
- **Advocates:** Snehasish…; Aishik Chak…

## Timeline

- **2012-08-18 — Initial Sanction of…**: Financial Creditor approved and sanctioned secured credit facilities for Rs. 17.50 Crore…
- **2023-03-31 — Enhanced Credit…**: Corporate Debtor was sanctioned credit facilities by State Bank of India for an enhanced…

## 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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