# In the matter of Baldeo Metals Private Limited (IB) 1808 (ND)-2019

> NCLT judgment dated 2020-06-04. Citation: TCN-2020-NCLT-01241. Tata Capital Financial Services Limited, a non-banking financial company, filed a petition…

- **Court:** NCLT
- **Order date:** 4 Jun 2020
- **Citation:** TCN-2020-NCLT-01241
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/baldeo-metals-private-limited-ib-1808-nd-2019-9902a13f

## Summary

### Background

Tata Capital Financial Services Limited, a non-banking financial company, filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Baldeo Metals Private Limited, the Corporate Debtor, due to its inability to liquidate its financial debt. The Corporate Debtor is in the business of sale and purchase of metals, specifically copper. The Corporate Debtor applied for a channel finance loan of INR 4,50,00,000/-. The Applicant issued a Sanction Letter sanctioning the channel finance facility. The Corporate Debtor executed a power of attorney in favor of the Applicant to enforce its rights in the event of default. The Corporate Debtor also executed a letter of undertaking cum

…

## Facts

Tata Capital Financial Services Limited (Applicant), a non-banking financial company, extended a channel finance facility to Baldeo Metals Private Limited (Corporate Debtor). The Corporate Debtor applied for a loan of INR 4,50,00,000/- on 2018-02-06. The Applicant sanctioned the loan on 2018-02-22. A Channel Financing Agreement was executed on 2018-03-06. The Corporate Debtor also executed a power of attorney and a deed of hypothecation in favor of the Applicant. Vedanta Limited assured the Applicant of the Corporate Debtor's sound condition. The facility was modified on 2018-07-06 to include raw material purchases from Vedanta Limited and Hindalco Industries Limited. The Applicant disbursed funds to the Corporate Debtor. The Corporate Debtor defaulted on payments,

…

## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** Section 7 of the IBC allows a financial creditor to file an application for initiating

…

**Reasoning:** The Adjudicating Authority considered the submissions of both parties and examined the

…

**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to

…

**Application:** In this case, the Adjudicating Authority found that the Corporate Debtor had

…

## Parties

- **Judges:** Sh. Abni Ranjan…; Sh. Kapal Kumar…
- **Appellants:** Tata Capital…
- **Respondents:** Baldeo Metals…

## Timeline

- **2018-02-06 — Loan Appli…**: The Corporate debtor applies for a channel…
- **2018-02-22 — Sanction…**: The Applicant issued a Sanction Letter sanctioning the channel finance facility of INR…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/baldeo-metals-private-limited-ib-1808-nd-2019-9902a13f