# In the matter of D C Industrial Plant Services Pvt. Ltd. C.P.(IB) No. 45-KB-2018

> NCLT judgment dated 2019-06-19. Citation: TCN-2019-NCLT-02838. Indian Overseas Bank, the Financial Creditor, filed a petition against D.C. Industrial Plant…

- **Court:** NCLT
- **Order date:** 19 Jun 2019
- **Citation:** TCN-2019-NCLT-02838
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/d-c-industrial-plant-services-pvt-ltd-cpib-no-45-kb-2018-09de12d4

## Summary

### Background

Indian Overseas Bank, the Financial Creditor, filed a petition against D.C. Industrial Plant Services Pvt. Ltd., the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petition was based on an alleged outstanding amount of Rs. 151,19,77,120.91. The Adjudicating Authority (AA) admitted the application and declared a moratorium. An Interim Resolution Professional (IRP) was appointed, later confirmed as the Resolution Professional (RP).

## Facts

Indian Overseas Bank (IOB) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against D.C. Industrial Plant Services Pvt. Ltd. (DCIPS) for initiating CIRP due to an outstanding debt of Rs. 151,19,77,120.91. The Adjudicating Authority admitted the application and declared a moratorium. Mrs. Savita Agarwal was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP sought an extension of the CIRP period, which was granted. The Committee of Creditors (CoC) rejected the Resolution Plan with a 100% majority vote, but failed to provide reasons for the rejection. The INTTUC Workers Union filed an application seeking directions for considering a resolution plan and for the possibility of

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## Issues and analysis

### Issue 1: Whether the application filed by Indian Overseas Bank 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 Adjudicating Authority was satisfied that the amount was due and payable, and the

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The Adjudicating Authority admitted the application because Indian Overseas

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Indian Overseas…
- **Respondents:** DC Industrial…

## Timeline

- **2018-01-11 — Notice of Ad…**: Adjudicating Authority issued notice of…
- **2019-01-25 — RP prays for extension…**: The RP during the course of hearing prayed for extension of the CIRP period beyond 180…

## 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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