# In the matter of Coastal Oil & Gas Infrastructure Private Limited TCP (IB) No. 71-7-AMR-TP-2019 {CP (IB) No. 699-7-HDB-2018}

> NCLT judgment dated 2019-10-30. Citation: TCN-2019-NCLT-00784. The case involves an application filed by financial creditors under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 30 Oct 2019
- **Citation:** TCN-2019-NCLT-00784
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/coastal-oil-gas-infrastructure-private-limited-tcp-ib-no-71-7-amr-tp-2019-cp-ib-aa0fa28c

## Summary

### Background

The case involves an application filed by financial creditors under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Coastal Oil & Gas Infrastructure Private Limited (Corporate Debtor) for defaulting on a financial debt. The Corporate Debtor entered into a Terminal Service Agreement (TSA) with Nagarjuna Oil Corporation Limited (NOCL) to develop a storage facility for a proposed refinery project. The Corporate Debtor obtained financial assistance from a consortium of banks, including the Petitioners (Bank of India and Central Bank of India). The refinery project by NOCL did not materialize, leading to the Corporate Debtor's inability to repay the loans.

## Facts

Coastal Oil & Gas Infrastructure Private Limited (Corporate Debtor) entered into a Terminal Service Agreement (TSA) with Nagarjuna Oil Corporation Limited (NOCL) to develop a storage facility for a proposed refinery project. To finance this project, the Corporate Debtor obtained credit facilities from a consortium of lenders, including Bank of India and Central Bank of India (Petitioners). Bank of India sanctioned a loan of Rs. 198 Crs, and Central Bank of India sanctioned Rs. 98.85 Crs. The loans were secured through loan agreements and mortgage deeds. The Corporate Debtor defaulted on repayments starting from 16.03.2015, leading to outstanding amounts of Rs. 251,20,90,427/- and Rs. 119,11,78,336/- respectively. The Petitioners filed a petition under Section 7 of

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## Issues and analysis

### Issue 1: Whether the Respondent owes a …

**Ratio:** Financial Debt defined in section 5 (8) of the Code inter alia includes money borrowed

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**Reasoning:** The court noted that the Respondent availed credit facility from the consortium of

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**Interpretation:** The court interpreted the definition of Financial Debt under Section 5(8) of

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**Application:** The court applied the definition of Financial Debt to the facts of the case,

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## Parties

- **Judges:** Janab Mohammed…
- **Appellants:** Bank of…
- **Respondents:** Costal Oil & Gas…

## Timeline

- **2010-05-24 — Company Incor…**: Coastal Oil & Gas Infrastructure Private…
- **N/A — Terminal Service…**: Respondent entered into a Terminal Service Agreement (TSA) with NOCL for developing and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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