# In the matter of Hindustan Dorr-Oliver Ltd. CP No. 596-MAH-2017

> NCLT judgment dated 2017-04-21. Citation: TCN-2017-NCLT-00891. The case pertains to an insolvency and bankruptcy petition filed by Bank of India, a financial…

- **Court:** NCLT
- **Order date:** 21 Apr 2017
- **Citation:** TCN-2017-NCLT-00891
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hindustan-dorr-oliver-ltd-cp-no-596-mah-2017-5b61eaad

## Summary

### Background

The case pertains to an insolvency and bankruptcy petition filed by Bank of India, a financial creditor, against Hindustan Dorr-Oliver Limited, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was filed due to the corporate debtor's default in making payment of Rs. 856,52,57,199 as on 31-03-2017 for various credit facilities sanctioned by the bank.

## Facts

Bank of India, the financial creditor, filed an insolvency petition against Hindustan Dorr-Oliver Limited, the corporate debtor, due to a default in payment. On 15-07-2014, Bank of India had sanctioned credit facilities amounting to Rs. 660.55 crores to the corporate debtor. These facilities included capital term loans, funded interest term loans, cash credit, and non-fund-based facilities. The corporate debtor's account was classified as a non-performing asset (NPA) on 30-09-2014. As of 31-03-2017, the outstanding amount was Rs. 856,52,57,199. The financial creditor sent a letter to the corporate debtor on 03-04-2017, detailing the outstanding amounts, which the corporate debtor acknowledged. The corporate debtor, through its counsel, conceded to the initiation of the

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the …

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

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**Reasoning:** The Bench observed that the corporate debtor defaulted in making payment, and the

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

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**Application:** The court applied Section 7 by verifying the existence of a default and

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** Bank of…
- **Respondents:** Hindustan…

## Timeline

- **2014-07-15 — Sanction of Credit…**: Bank of India sanctioned credit facilities to Hindustan Dorr-Oliver Limited to the extent…
- **2014-09-30 — Account Classified as…**: The account of Hindustan Dorr-Oliver Limited was classified as a non-performing asset…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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