# State Bank of India vs. Bhakti Extractions Private Limited

> NCLT judgment dated 2026-09-30. Citation: TCN-2026-NCLT-01086. State Bank of India (Financial Creditor) filed a Section 7 application under the IBC against…

- **Court:** NCLT
- **Order date:** 30 Sept 2026
- **Citation:** TCN-2026-NCLT-01086
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/bhakti-extractions-private-limited-nrtsh

## Summary

### Background

State Bank of India (Financial Creditor) filed a Section 7 application under the IBC against Bhakti Extractions Private Limited (Corporate Debtor) due to a default on credit facilities. The Corporate Debtor had availed substantial credit, which was repeatedly renewed and enhanced, secured by various assets and personal guarantees. The account was declared NPA on March 31, 2025, with over Rs. 66 Crores outstanding. The Corporate Debtor raised objections regarding the authorization of the Financial Creditor's representative and the non-compliance with MSME restructuring guidelines.

## Facts

State Bank of India (Financial Creditor) filed an application under Section 7 of the IBC, 2016, to initiate CIRP against Bhakti Extractions Private Limited (Corporate Debtor).

The application, C.P.(IB) No.730/MB/2026, was filed on June 25, 2026.

The Corporate Debtor availed credit facilities from the Financial Creditor, initially aggregating to Rs. 3 Crores, which were subsequently enhanced and modified over time, with the last enhancement being for Rs. 57,84,00,000/- on August 30, 2024.

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## Issues and analysis

### Issue 1: Whether the application for initiating CIRP under Section 7 of the IBC was filed by a duly …

**Ratio:** An Assistant General Manager (SMGS-IV and above) of State Bank of India is statutorily

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**Reasoning:** The Corporate Debtor objected that the Financial Creditor's representative, Mr. Vimal

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**Interpretation:** The Tribunal interpreted the relevant regulations and precedents to mean that a

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**Application:** Mr. Vimal Vachha, an Assistant General Manager, falls within the authorized

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** State Bank of…
- **Respondents:** Bhakti Extractions…
- **Other parties:** Committee of…; Mukesh…
- **Advocates:** Devesh…; Abhinav…; +7 more

## Timeline

- **2004-09-25 — Initial Credit…**: Initial credit facilities aggregating to Rs. 3,00,00,000/- were sanctioned to the…
- **2004-10-12 — Board Resolution for…**: The Corporate Debtor passed a Board Resolution acknowledging the sanction of the credit…

## 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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