# In the matter of K. K. Kadri Paper Mills Pvt. Ltd. C.P. (IB) No. 407-7-NCLT-AHM-2018

> NCLT judgment dated 2019-07-25. Citation: TCN-2019-NCLT-02292. The case pertains to an I.B. Petition filed by Edelweiss Asset Reconstruction Co. Ltd.…

- **Court:** NCLT
- **Order date:** 25 Jul 2019
- **Citation:** TCN-2019-NCLT-02292
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/k-k-kadri-paper-mills-pvt-ltd-cp-ib-no-407-7-nclt-ahm-2018-5b866de1

## Summary

### Background

The case pertains to an I.B. Petition filed by Edelweiss Asset Reconstruction Co. Ltd. (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against K.K. Kadri Paper Mills Pvt. Ltd. (Corporate Debtor). The Financial Creditor is acting as a trustee of EARC Trust, SC 31. The Corporate Debtor had availed credit facilities from Bank of Baroda in 2011, which were renewed/enhanced in 2012. The bank sanctioned various credit facilities amounting to Rs. 14.80 Crores. The Corporate Debtor failed to make payments despite reminders, leading to a demand notice issued by Bank of Baroda on 01.10.2012 and a further notice by EARC on 09.07.2015. The Assignor assigned the debts to the

…

## Facts

Edelweiss Asset Reconstruction Co. Ltd., acting as a Financial Creditor and trustee of EARC Trust SC 31, filed an I.B. Petition against K.K. Kadri Paper Mills Pvt. Ltd., the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had availed credit facilities from Bank of Baroda amounting to Rs. 14.80 Crores, which were renewed/enhanced in 2012. Despite repeated reminders, the Corporate Debtor failed to make payments. Bank of Baroda issued a demand notice on 01.10.2012, followed by a notice from EARC on 09.07.2015. The debts were assigned to the Applicant on 26.03.2014. The outstanding debt as of 31st July 2018, was Rs. 44,51,74,964/-. The Corporate Debtor acknowledged its debt and attempted a one-time settlement for Rs.

…

## Issues and analysis

### Issue 1: Whether the present I.B. Petition filed by the Financial Creditor 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 found that the Corporate Debtor had not expressly denied its

…

**Interpretation:** Section 7 of the IBC is interpreted to mean that if a debt exists, a default

…

**Application:** In this case, the Corporate Debtor admitted to the loan liability and defaulted

…

## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Appellants:** Edelweiss Asset…
- **Respondents:** K.K. Kadri Paper…

## Timeline

- **2011-01-01 — Credit Facilities…**: The Respondent/Corporate-Debtor approached the…
- **2012-04-30 — Bank San…**: The said Bank sanctioned/renewed/enhanced the…

## 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/k-k-kadri-paper-mills-pvt-ltd-cp-ib-no-407-7-nclt-ahm-2018-5b866de1