Case Details

Case Name: State Bank of India vs Martina Bio Genics Private Limited (In Liquidation)

Court/Authority: National Company Law Tribunal, Kolkata Bench, Court-II

Case Number: I.A. (Companies Act) No. 76/2025 in T.P. No. 26/KB/2023

Date of Pronouncement: 22 May 2026

Period of Violation/Dispute: Default date: 28 December 2014; NPA declared: 28 March 2015; SARFAESI notice issued: 12 July 2016

Parties Involved

Petitioner/Applicant: State Bank of India (Financial Creditor)

Respondent: Martina Bio Genics Private Limited (Corporate Debtor in Liquidation)

Other Creditors: Synchronise Scientific Glass Works Pvt Ltd (Petitioning Creditor in CP 347/2015), Manish Kumar Jajodia (Petitioning Creditor in CP 49/2016)

Legal Representatives: Mr. Santosh Kumar Ray, Adv. and Ms. Ashmita Lohia, Adv. for SBI; Mr. Vikas Baisya, Adv. and Ms. Ranjana Seal, Adv. for Corporate Debtor

Tribunal Members: Shri Labh Singh (Member Judicial), Ms. Rekha Kantilal Shah (Member Technical)

Interim Resolution Professional: Mr. Jitendra Lohia (IBBI/IPA-001/P00170/2017-18/10339)

Issues / Allegations / Violations

  • Corporate Debtor availed credit facilities from SBI which were reviewed, renewed and enhanced from time to time, lastly on 04 February 2014
  • Corporate Debtor failed to repay principal debt and interest as per agreed terms and conditions, committing breach of sanction agreements
  • Account classified as Non-Performing Asset (NPA) on 28 March 2015 with date of default being 28 December 2014
  • SBI issued notice under Section 13(2) of SARFAESI Act 2002 on 12 July 2016 followed by notice under Section 13(4)(a)
  • Multiple winding-up petitions were filed against the company under Companies Act, 1956 - CP 347/2015 by Synchronise Scientific Glass Works and CP 49/2016 by Manish Kumar Jajodia
  • Official Liquidator failed to take appropriate steps to sell assets and properties of the company since 2016

Findings & Observations

  • Tribunal found that debt and default stands established with claim amount of ₹178,05,45,766.81 as of December 2024
  • The amount exceeds ₹1 crore threshold prescribed under Section 4(1) of IBC for initiating CIRP via Section 7
  • Tribunal referenced Supreme Court judgment in Forech India Ltd. vs. Edelweiss Assets Reconstruction Co. Ltd. regarding transfer of winding-up petitions to NCLT
  • Cited Innoventive Industries Limited v. ICICI Bank Limited case establishing that adjudicating authority's role is limited to assessing records to satisfy itself that default has occurred
  • Noted that primary focus of IBC 2016 is revival and continuation of corporate debtor, not mere recovery legislation for creditors
  • Official Liquidator's status report dated 31 October 2023 confirmed no steps for sale of assets could be initiated as they were only in symbolic possession

Penalties / Settlements / Directions

  • Petition admitted for initiating Corporate Insolvency Resolution Process under Section 7 of I&B Code
  • Moratorium imposed under Section 14(1) of IBC prohibiting: institution/continuation of suits against corporate debtor; transferring/encumbering assets; foreclosure/recovery actions; recovery of property by owners/lessors
  • Mr. Jitendra Lohia appointed as Interim Resolution Professional with IBBI Registration No. IBBI/IPA-001/P00170/2017-18/10339
  • Official Liquidator, High Court Calcutta discharged as liquidator and directed to hand over all documents, records, and possession of movable/immovable properties to IRP
  • Financial Creditors (SBI) directed to pay ₹3,00,000 to IRP to meet CIRP costs
  • IRP directed to make public announcement within 3 days and call for submission of claims under Section 15
  • Management of corporate debtor vests with IRP under Section 17 of IBC
  • Police authorities directed to provide assistance to IRP for taking charge of corporate debtor's assets

Corrective Actions & Future Obligations

  • IRP must conduct CIRP in timebound manner as per Regulation 40A of IBBI (Insolvency Resolution Process for Corporate Persons) Regulation, 2016
  • Officers and managers of corporate debtor must provide all documents and information to IRP within one week
  • IRP must submit periodical reports to Adjudicating Authority including minutes of Committee of Creditors
  • Registry directed to communicate order to Financial Creditor, Corporate Debtor, IRP, IBBI, and Registrar of Companies
  • Registrar of Companies must update master data and send compliance report within seven days
  • Matter posted for 30 June 2026 for filing periodical progress report by IRP/RP

Final Ruling & Enforcement

  • I.A. (Companies Act) No. 76/2025 allowed and disposed of
  • Corporate Insolvency Resolution Process initiated against Martina Bio Genics Private Limited
  • Moratorium shall cease to have effect as per Section 14(4) of I&B Code
  • Certified copies to be supplied to parties upon compliance with requisite formalities