# In the matter of Gupta Exim India Pvt. Ltd. CP (IB) No.312-Chd-Hry-2018

> NCLT judgment dated 2019-10-29. Citation: TCN-2019-NCLT-00788. The Oriental Bank of Commerce filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 29 Oct 2019
- **Citation:** TCN-2019-NCLT-00788
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gupta-exim-india-pvt-ltd-cp-ib-no312-chd-hry-2018-8e992bb1

## Summary

### Background

The Oriental Bank of Commerce filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Gupta Exim India Private Limited, referred to as the Corporate Debtor. The bank claimed that the Corporate Debtor had defaulted on credit facilities sanctioned since 1991, with the latest facility sanctioned on March 21, 2015. The bank's application was filed in the prescribed Form No. 1 and supported by various documents, including the master data of the Corporate Debtor, details of outstanding amounts, and security particulars.

## Facts

Oriental Bank of Commerce filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Gupta Exim India Private Limited. The Corporate Debtor was incorporated on 16.01.1996. The bank had sanctioned credit facilities to the Corporate Debtor since 01.10.1991, with the last facility sanctioned on 21.03.2015. The Corporate Debtor defaulted on payments, leading to loan accounts being declared Non-Performing Assets (NPA) on 30.06.2016, effective from 31.10.2013. The total amount due from the Corporate Debtor as of 12.09.2018 was ₹5,56,58,63,761.40. The credit facilities were secured by mortgages of land, buildings, plant, machinery, and other assets. The Corporate Debtor acknowledged the

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## Issues and analysis

### Issue 1: Whether the application filed by Oriental Bank of Commerce under Section 7 of the Insolvency and …

**Ratio:** Section 7(5)(a) of the Insolvency and Bankruptcy Code, 2016, stipulates that the

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**Reasoning:** The Adjudicating Authority found the application filed by Oriental Bank of Commerce in

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**Interpretation:** Section 7 of the IBC outlines the procedure for initiating CIRP by a financial

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**Application:** In this case, the application was found to be complete, as it was filed in the

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Oriental Bank of…
- **Respondents:** Gupta Exim India…; M/s Gupta Exim…

## Timeline

- **1991-10-01 — First Credit Facilities…**: The Corporate Debtor was first sanctioned…
- **1996-01-16 — Corporate Debtor…**: Gupta Exim India Private…

## 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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