# In the matter of Greendiamz Biotech Limited CP (IB)No. 17-7-NCLT-AHM-2019

> NCLT judgment dated 2020-05-27. Citation: TCN-2020-NCLT-01316. Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 27 May 2020
- **Citation:** TCN-2020-NCLT-01316
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/greendiamz-biotech-limited-cp-ibno-17-7-nclt-ahm-2019-bd419ab9

## Summary

### Background

Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Greendiamz Biotech Limited for initiation of Corporate Insolvency Resolution Process (CIRP) due to default in repayment of loan/credit facilities. The bank claimed a total outstanding debt of Rs. 85,71,54,265.28 as of 30.09.2018, inclusive of unpaid interest, penalty, and other expenses. The corporate debtor had earlier submitted an One Time Settlement (OTS) offer of Rs. 1600.00 lakhs, which was not considered by the bank.

## Facts

Union Bank of India (the Petitioner), a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Greendiamz Biotech Limited (the Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated on 08.05.2009 under the Companies Act, 1956. The Petitioner had granted various loan/credit facilities to the Corporate Debtor, including CC Hyp, LC/LG, and Term Loans. The total amount claimed to be in default was Rs. 85,71,54,265.28 as of 30.09.2018. The Corporate Debtor had submitted an One Time Settlement (OTS) offer of Rs. 1600.00 lakhs, which was not considered by the Petitioner. The Corporate Debtor had also filed a Securitization Application bearing No. 161 of 2018

…

## Issues and analysis

### Issue 1: Whether the present application filed by the Union Bank of India under Section 7 of the Insolvency …

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

…

**Reasoning:** The Adjudicating Authority examined the facts and circumstances of the case and found

…

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

…

**Application:** In this case, the Petitioner had established the existence of a debt and

…

## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Union Bank of…
- **Respondents:** Greendiamz…
- **Advocates:** Mahendra P.…; Aditya J…; +1 more

## Timeline

- **2009-05-08 — Incorporation of…**: Greendiamz Biotech Limited was…
- **2013-03-29 — Corporate Debtor's…**: Corporate Debtor's Board Resolution dated 29.03.2013 accepting the terms and conditions…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/greendiamz-biotech-limited-cp-ibno-17-7-nclt-ahm-2019-bd419ab9