# In the matter of BTT Industries Private Limited CP (IB) No. 341-7-HDB-2019

> NCLT judgment dated 2019-10-15. Citation: TCN-2019-NCLT-00984. The case involves a petition filed by Bharat Tubes & Tin Printers (Financial Creditor) against…

- **Court:** NCLT
- **Order date:** 15 Oct 2019
- **Citation:** TCN-2019-NCLT-00984
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/btt-industries-private-limited-cp-ib-no-341-7-hdb-2019-04c65b67

## Summary

### Background

The case involves a petition filed by Bharat Tubes & Tin Printers (Financial Creditor) against BTT Industries Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor defaulted on a total amount of Rs. 30,21,44,084, which includes a principal amount of Rs. 26,97,71,504 and interest at 12% amounting to Rs. 3,23,72,580. The Corporate Debtor had taken a cash credit and term loan from the State Bank of Hyderabad (SBH) for its commercial business purposes, for which the Financial Creditor had given a Corporate Guarantee and mortgaged its properties. The Corporate Debtor was unable to serve its debt and the account became NPA. The Financial Creditor agreed to help the Corporate Debtor settle the loan with SBH,

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## Facts

Bharat Tubes & Tin Printers (Financial Creditor) filed a petition against BTT Industries Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor defaulted on a total amount of Rs. 30,21,44,084, including a principal of Rs. 26,97,71,504 and interest of Rs. 3,23,72,580. The Corporate Debtor had taken loans from State Bank of Hyderabad (SBH), with the Financial Creditor providing a Corporate Guarantee and mortgaging properties as security. The Corporate Debtor's account became a Non-Performing Asset (NPA). The Financial Creditor agreed to help the Corporate Debtor settle the SBH loan, and a compromise agreement was made. The Corporate Debtor entered into a loan agreement with the Financial Creditor,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its financial obligations to the Financial Creditor, …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court reasoned that the Corporate Debtor did not dispute the existence of the debt or

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**Interpretation:** Section 7 of the IBC, 2016 is interpreted to mean that if a financial debt

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**Application:** The court applied the ratio to the facts by noting that the Corporate Debtor

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…
- **Appellants:** Bharat Tubes &…
- **Respondents:** BTT Industries…
- **Advocates:** D. Siri P…; A. Sandhy…; +1 more

## Timeline

- **2010-01-01 — Loan Ava…**: Corporate Debtor availed cash credit and term…
- **2013-12-31 — Account Decla…**: The account of the Corporate Debtor…

## 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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