# In the matter of Millennium Wires Pvt. Ltd. CP (IB) No. 159-Chd-Pb-2018

> NCLT judgment dated 2018-08-30. Citation: TCN-2018-NCLT-00852. Oriental Bank of Commerce, as a Financial Creditor, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 30 Aug 2018
- **Citation:** TCN-2018-NCLT-00852
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/millennium-wires-pvt-ltd-cp-ib-no-159-chd-pb-2018-84364253

## Summary

### Background

Oriental Bank of Commerce, as a Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Millennium Wires Pvt. Ltd., the Corporate Debtor. The Corporate Debtor had been availing loan facilities since 2002, with the latest documents executed on 19.09.2014. The bank sought to recover outstanding debts, claiming the Corporate Debtor had defaulted on payments. The petition was filed due to the Corporate Debtor's failure to meet its financial obligations, leading to its accounts being classified as Non-Performing Assets (NPA).

## Facts

Oriental Bank of Commerce (OBC), the Petitioner-Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Millennium Wires Pvt. Ltd., the Respondent-Corporate Debtor. The Corporate Debtor had been availing loan facilities from the bank since 2002, with the latest documents executed on 19.09.2014. As per the latest documents of the year 2014, the respondent-Corporate Debtor was granted the working capital term loan to the tune of ₹6.53 Crores; Cash Credit (Hypothecation) ₹19.88 Crores (existing); Cash Credit (Hypothecation) Fresh ₹2 Crores; Letter of Credit-I ₹3.90 Crores; Letter of Credit-II ₹7 Crores; and FTLT ₹2.66 Crores, aggregating to ₹41.97 Crores. The Corporate Debtor defaulted in making payments, leading to

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## Issues and analysis

### Issue 1: Whether the petition filed by the Oriental Bank of Commerce 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 NCLT found that the petition filed by the Oriental Bank of Commerce was complete, as

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

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**Application:** In this case, the Oriental Bank of Commerce provided sufficient evidence of the

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Oriental Bank of…
- **Respondents:** M/s Millennium…

## Timeline

- **2002-01-01 — Loan Facilitie…**: Respondent-Corporate Debtor had been availing the loan facilities on the basis of various…
- **2014-09-19 — Latest Loan Documents…**: The latest documents were…

## 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)

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