State Bank of India Vs Coastal Projects Limited [CP (IB) No. 593/KB/2017] - Synopsis
Team SoOLEGAL 4 Dec 2020

In this particular case, State Bank of India Vs Coastal Projects Limited [CP (IB) No. 593/KB/2017], the Kolkata Bench of National Company Law Tribunal has admitted Corporate Insolvency Resolution Proceedings against the respondent company. The name of the respondent company can be seen in the second list of defaulters of loans on Reserve Bank Of India. The respondent company was referred to the Insolvency Board by the appellant for unpaid dues of more than Rs 900 crore. A Resolution Professional has been appointed by the appellant to control the insolvency process of the company Coastal Projects which is the respondent in this particular case. The appellant company SBI with its lawyer, Sauvik Majumdar, appeared before the court, asking the bench to entertain the insolvency petition against the firm under Section 7 of the Insolvency and Bankruptcy Code. The cumulative cost of the respondent Coastal Project claims amounted to approximately Rs 975.27 crore up to 30 September 2017. The organisation did not challenge the default number. At the last hearing of the case on 3 January 2018, the appellant company’s counsel Bishwajit Dubey told the court division, that the firm had been on RBI's list of defaulters. Justice Vijai Pratap Singh and Justice Jinan KR were hearing the petition.
According to the respondent company on 29th   March 2014, the company's fund and non-funded facilities amounting to Rs 4.435 crore were restructured under the corporate debt restructuring scheme. Although the package has been introduced, the recovery of the business takes time for external and internal purposes and also for the stressed process of the infrastructure industry. The Court had approved the petition which was submitted by the financial creditor pursuant to Section 7 of the 2016 Insolvency & Bankruptcy Code for the commencement of the corporate settlement process and had also been declared a moratorium and a public statement as set out in Section 13 of the IBC 2016.

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