# In the matter of Bangalore Dehdration and Drying Equipment Co. Pvt. Ltd. C.P. (IB) No. 135-BB-2018

> NCLT judgment dated 2020-01-27. Citation: TCN-2020-NCLT-02169. The case involves an application filed by Ugro Capital Limited (formerly known as Zwirn Pragati…

- **Court:** NCLT
- **Order date:** 27 Jan 2020
- **Citation:** TCN-2020-NCLT-02169
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bangalore-dehdration-and-drying-equipment-co-pvt-ltd-cp-ib-no-135-bb-2018-05a9fdf0

## Summary

### Background

The case involves an application filed by Ugro Capital Limited (formerly known as Zwirn Pragati Capfin Pvt. Ltd.) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Bangalore Dehydration and Drying Equipment Co. Pvt. Ltd. (BDDE). The application was initially dismissed by the Adjudicating Authority, but this order was set aside by the NCLAT, which directed the Adjudicating Authority to admit the case.

## Facts

Ugro Capital Limited, formerly known as Zwirn Pragati Capfin Pvt. Ltd., filed an application under Section 7 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Bangalore Dehydration and Drying Equipment Co. Pvt. Ltd. (BDDE). The application was based on the grounds that BDDE had defaulted on a total outstanding amount of Rs. 25,81,85,297/- out of a total debt granted of Rs. 4,00,00,000/-, which was disbursed in multiple tranches in March and June 2008. The Adjudicating Authority initially dismissed the petition on 05.07.2019, but the NCLAT overturned this decision on 22.01.2020 and directed the Adjudicating Authority to admit the case. Ms. Ramanathan Bhuvaneshwari was suggested as the IRP and declared her willingness to accept the

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## Issues and analysis

### Issue 1: Whether the application for initiating Corporate Insolvency Resolution Process (CIRP) against …

**Ratio:** Section 7 of the IBC, 2016, allows a financial creditor to initiate CIRP against a

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**Reasoning:** The NCLAT had already set aside the initial dismissal order and directed the Adjudicating

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**Interpretation:** The interpretation of Section 7 of the IBC allows for the initiation of CIRP

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**Application:** Given the NCLAT's direction and the provisions of Section 7, the Adjudicating

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** UGRO Capital…
- **Respondents:** Bangalore…
- **Advocates:** Abhijit…; Akhila…; +1 more

## Timeline

- **2018-01-01 — C.P. (IB) No.135/BB/2018…**: C.P. (IB) No.135/BB/2018 is filed by M/s. Ugro Capital Limited (in place of M/s. Asia…
- **2019-07-05 — Company Petition…**: The Adjudicating Authority dismissed the…

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