# In the matter of Bothra Metals and Alloys Limited CP (IB) No.2579-MB-IV-2019

> NCLT judgment dated 2020-07-06. Citation: TCN-2020-NCLT-01062. The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Jul 2020
- **Citation:** TCN-2020-NCLT-01062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bothra-metals-and-alloys-limited-cp-ib-no2579-mb-iv-2019-b7ada329

## Summary

### Background

The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Syndicate Bank, the Financial Creditor, against Bothra Metals and Alloys Limited, the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The petition was filed on 04.07.2019, alleging that the Corporate Debtor failed to make payment of a sum of ₹44,18,69,698.53 as principal and ₹17,28,82,823.06 as interest as on 02.09.2015, which is stated to be the date of default. The Financial Creditor had agreed to take over the working capital facilities from ICICI Bank and State Bank of India and provided additional fresh working capital loan to the Corporate Debtor.

## Facts

Syndicate Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Bothra Metals and Alloys Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The petition was filed on 04.07.2019, alleging a default of ₹44,18,69,698.53 as principal and ₹17,28,82,823.06 as interest as on 02.09.2015. The Financial Creditor had taken over working capital facilities from ICICI Bank and State Bank of India, providing additional loans to the Corporate Debtor. The Corporate Debtor executed various security documents. The Corporate Debtor argued that the claim was barred by limitation, the account was wrongly classified as NPA on 03.12.2015, and the Financial Creditor stopped Buyers Credit Facility in December 2014, leading to

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is complete in all respects as required by …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, read with rule 4(1) of the

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**Reasoning:** The Adjudicating Authority found that the application made by the Financial Creditor was

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**Interpretation:** The completeness of the application is a

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**Application:** The Adjudicating Authority examined the application and found it to be

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** Syndicate…
- **Respondents:** Bothra Metals and…
- **Advocates:** Rohan Ag…; Nishit D…; +4 more

## Timeline

- **2001-11-09 — Incorporation of…**: Bothra Metals and Alloys Limited…
- **2014-02-24 — Sanction…**: Financial Creditor agreed to take over working capital facilities from ICICI Bank and…

## 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)

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