# In the matter of FERROUS INVESTMENTS PRIVATE LIMITED

> NCLT judgment dated 2025-09-15. Citation: TCN-2025-NCLT-01363. Jammu and Kashmir Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Sept 2025
- **Citation:** TCN-2025-NCLT-01363
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/ferrous-investments-private-limited-d0dd1765

## Summary

### Background

Jammu and Kashmir Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Ferrous Investments Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed that the Corporate Debtor, acting as a corporate guarantor for loans disbursed to Rathi Super Steel Ltd., defaulted on its payment obligations.

## Facts

Jammu and Kashmir Bank, the Financial Creditor, filed a petition under Section 7 of the IBC against Ferrous Investments Private Limited, the Corporate Debtor.

The Corporate Debtor acted as a corporate guarantor for loans sanctioned to Rathi Super Steel Ltd.

The Financial Creditor sanctioned term loan facilities and working capital facilities to Rathi Super Steel Ltd.

The Corporate Debtor executed unconditional and irrevocable Deeds of Corporate Guarantee in favor of the lenders, including the Financial Creditor.

Rathi Super Steel Ltd. defaulted in its credit facilities, and its account was classified as NPA on 30.06.2015.

The Financial Creditor issued a Guarantee Invocation Notice dated 17.12.2021 to the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the Financial Creditor is qualified to initiate Section 7 Application against the Corporate …

**Ratio:** The Financial Creditor has the right to recover the outstanding dues by filing a suit and

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**Reasoning:** The Corporate Debtor extended corporate guarantees in favor of the lender banks,

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**Interpretation:** The liability of the Corporate Guarantor is coextensive with that of the

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**Application:** The Financial Creditor is qualified to initiate Section 7 Application against

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; Anu Jagmoha…
- **Appellants:** Jammu and Kashmir…; Jammu & Kashmir…
- **Respondents:** Ferrous Investment…
- **Other parties:** Chhaya…; Rathi Super Steel…
- **Advocates:** Chatanya…; Amit D…; +1 more

## Timeline

- **2015-06-30 — Date of D…**: As per the Part IV of the application…
- **2022-01-20 — Filing of P…**: The present petition was filed on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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