# 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-00979. 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-00979
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/btt-industries-private-limited-cp-ib-no-341-7-hdb-2019-7158334a

## 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, including a principal amount of Rs. 26,97,71,504 and interest of 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 provided a Corporate Guarantee and mortgaged its properties. The Corporate Debtor was unable to serve its debt, and the account became NPA in the books of SBH. The Financial Creditor agreed to help the Corporate Debtor settle the loan of SBH, and a

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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, which included a principal amount of Rs. 26,97,71,504 and interest of Rs. 3,23,72,580. The Corporate Debtor had taken a cash credit of Rs. 7,00,00,000, which was subsequently enhanced to Rs. 11,00,00,000, and a term loan of Rs. 16,00,00,000 from the State Bank of Hyderabad (SBH) in 2010 and 2011. The Financial Creditor provided a Corporate Guarantee and mortgaged its properties as security for the loan. The Corporate Debtor was unable to serve its debt, and the account became NPA in the books of SBH on 31.12.2013.

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The NCLT considered the averments made by both parties and found that the Corporate

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

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**Application:** The Corporate Debtor defaulted on the repayment of Rs. 30,21,44,084 to the

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…
- **Appellants:** Bharat Tubes &…
- **Respondents:** BTT Industries…

## Timeline

- **2010-01-01 — Loan Ava…**: Corporate Debtor availed cash credit and…
- **2011-01-01 — Loan Ava…**: Corporate Debtor availed cash credit 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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