# In the matter of Kolkata Conductor & Cables Pvt. Ltd. CP (IB) No. 145-KB-2018

> NCLT judgment dated 2018-09-11. Citation: TCN-2018-NCLT-00787. The case pertains to an application filed by Oriental Bank of Commerce under Section 7 of the…

- **Court:** NCLT
- **Order date:** 11 Sept 2018
- **Citation:** TCN-2018-NCLT-00787
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kolkata-conductor-cables-pvt-ltd-cp-ib-no-145-kb-2018-525bb7d7

## Summary

### Background

The case pertains to an application filed by Oriental Bank of Commerce under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against M/s. Kolkata Conductor & Cables Pvt. Ltd. The application was based on the corporate debtor's alleged default in repaying a loan. The financial creditor, Oriental Bank of Commerce, claimed that the corporate debtor defaulted in repaying a loan amounting to Rs. 20,31,28,651.32, including interest, as of 08/01/2018. The financial creditor had granted loan and various credit facilities to the corporate debtor from time to time which was renewed and enhanced in the year 2013 and curving of WCDL facility from the existing cash credit limit was sanctioned on 10/05/2014.

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## 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 M/s. Kolkata Conductor & Cables Pvt. Ltd. The bank claimed that the company defaulted on a loan of Rs. 20,31,28,651.32, including interest, as of 08/01/2018. The bank had extended various credit facilities to the company, which were renewed and enhanced in 2013. A WCDL facility was sanctioned on 10/05/2014. The company failed to repay the principal and interest. The bank issued a demand notice on 10/09/2015 under Section 13(2) of the SARFAESI Act, 2002. The bank provided documents including letters of sanction dated 28/03/2007, 11/01/2010, 13/06/2011, 28/02/2013, and 20/05/2014, agreements,

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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 documents submitted by the financial creditor, including letters

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

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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:** Oriental Bank of…
- **Respondents:** M/s. Kolkata…

## Timeline

- **2014-05-10 — WCDL Facility S…**: WCDL facility from the existing…
- **2015-04-30 — Account Classified as…**: Account has been…

## 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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