# In the matter of Krishna Oils & Proteins Pvt. Ltd. TP 128-2019 C.P. (I.B) No. 220-7-NCLT-AHM-2019

> NCLT judgment dated 2020-03-13. Citation: TCN-2020-NCLT-01534. The Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 13 Mar 2020
- **Citation:** TCN-2020-NCLT-01534
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/krishna-oils-proteins-pvt-ltd-tp-128-2019-cp-ib-no-220-7-nclt-ahm-2019-94127907

## Summary

### Background

The Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Krishna Oils & Proteins Private Limited, citing default in repayment of term loans, EPC, and CC facilities. The bank, incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, claimed a total due of INR 15,56,82,404.36 as of March 1, 2019. The corporate debtor, Krishna Oils & Proteins Private Limited, incorporated on October 4, 2006, with a nominal share capital of INR 1,00,00,000, defaulted on August 2, 2014. The bank submitted various documents, including loan agreements, CIBIL reports, and ROC search reports, to substantiate its claim.

## Facts

Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Krishna Oils & Proteins Private Limited. The Corporate Debtor defaulted in repayment of term loans, EPC, and CC facilities. Bank of India is incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. Krishna Oils & Proteins Private Limited was incorporated on 04/10/2006 with CIN: U01405MP2006PTC018996. The nominal share capital of the Respondent (CD) Company is INR.1,00,00,000/-. The Corporate Debtor availed loans by executing various documents. The total aggregate limit sanctioned by the Applicant Bank was Rs.19.05 Crores. The Corporate Debtor defaulted in

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making repayment of loan/credit facilities to the …

**Ratio:** The legal principle is that a default in repayment of debt triggers the right of a

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**Reasoning:** The Adjudicating Authority relied on the statement of accounts and the CIBIL reports

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**Interpretation:** This confirms that a financial creditor can initiate CIRP if the corporate

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**Application:** The Corporate Debtor defaulted in making repayment of loan/credit facilities to

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Bank of…
- **Respondents:** Krishna Oils &…; Krishna Oils &…

## Timeline

- **2006-10-04 — Incorporation of…**: Krishna Oils & Proteins…
- **2007-09-25 — Sanction…**: Sanction Letter dated 25.09.2007 for Term Loan-I Rs.116 Lakhs and Term Loan-II Rs.249…

## 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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