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

> NCLT judgment dated 2018-07-30. Citation: TCN-2018-NCLT-01042. The case originates from an application filed by Indian Overseas Bank, the financial creditor,…

- **Court:** NCLT
- **Order date:** 30 Jul 2018
- **Citation:** TCN-2018-NCLT-01042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dc-industrial-plant-services-pvt-ltd-cp-ib-no45-kb-2018-1611fa67

## Summary

### Background

The case originates from an application filed by Indian Overseas Bank, the financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against D.C. Industrial Plant Services Pvt. Ltd., the corporate debtor. The financial creditor claimed that the corporate debtor defaulted on a total outstanding amount of Rs. 151,19,77,120.91. The corporate debtor availed various loans from the financial creditor, executing multiple agreements including Inter se Agreements, Working Capital Consortium Agreements, Joint Deeds of Hypothecation, and Term Loan Agreements. The account was declared a Non-Performing Asset (NPA) on 29/10/2014 due to non-payment. The financial creditor issued demand notices, and

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## Facts

Indian Overseas Bank (IOB), the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against D.C. Industrial Plant Services Pvt. Ltd., the corporate debtor. The corporate debtor had availed various loans from IOB, executing Inter se Agreements dated 15/07/2006, Working Capital Consortium Agreements dated 15/07/2006, Joint Deeds of Hypothecation dated 15/07/2006, Supplemental Inter se Agreements dated 15/02/2008, First Supplemental Working Capital Consortium Agreements dated 15/02/2008, First Supplemental Joint Deed of Hypothecation dated 15/02/2008, and Term Loan Agreements dated 15/11/2010. The corporate debtor defaulted on repayment, leading to an

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## Issues and analysis

### Issue 1: Whether the application 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 court considered the arguments made by the corporate debtor regarding the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to initiate CIRP when a

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**Application:** The court applied Section 7 to the facts of the case, finding that the

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## Parties

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

## Timeline

- **2006-07-15 — Execution of Inter se…**: The corporate debtor executed an Inter se…
- **2006-07-15 — Execution of Working Capital Consortium…**: The corporate debtor executed a Working Capital Consortium Agreement with the financial…

## 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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