# 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-01540. 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-01540
- **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-aa436c00

## Summary

### Background

The Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Krishna Oils & Proteins Private Limited, the Corporate Debtor, due to default in repayment of term loans, EPC, and CC facilities. The Corporate Debtor was incorporated on 04/10/2006. The Corporate Debtor defaulted in payment, with the date of default being 02/08/2014. The Petitioner Bank claimed dues of Rs. 15,56,82,404.36 as of 01/03/2019. The Financial Creditor submitted various documents, including loan agreements, CIBIL reports, and ROC search reports, to substantiate its claim. The Corporate Debtor raised objections, alleging excessive interest, inadequate cash credit limit, and that

…

## Facts

The Bank of India, Saket Nagar Branch, Indore, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Krishna Oils & Proteins Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). Krishna Oils & Proteins Private Limited was incorporated on 04/10/2006. The Corporate Debtor had availed various loan facilities from the Bank, including term loans and cash credit facilities. The total aggregate limit sanctioned to the Corporate Debtor was Rs. 865 Lakhs as of 25/09/2007, Rs. 12.22 Crore as of 02/02/2011, and Rs. 19.05 Crores as of 04/04/2013. The Corporate Debtor defaulted in payment, with the date of default being 02/08/2014. The Petitioner Bank claimed dues of Rs. 15,56,82,404.36 as of 01/03/2019,

…

## Issues and analysis

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

**Ratio:** The principle is that a default occurs when a debt is due and payable but is not paid by

…

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

…

**Interpretation:** The legal issue revolves around establishing that the Corporate Debtor failed

…

**Application:** In this case, the Corporate Debtor, Krishna Oils & Proteins Private

…

## 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 for Term Loan-I Rs.116 Lakhs and Term Loan-II Rs.249 Lakhs, Aggregate…

## Legal provisions

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

---

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/krishna-oils-proteins-pvt-ltd-tp-128-2019-cp-ib-no-220-7-nclt-ahm-2019-aa436c00