# In the matter of NCML Industries Limited C.P. No. IB-254 (PB)-2017

> NCLT judgment dated 2017-11-07. Citation: TCN-2017-NCLT-00233. Central Bank of India, the financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 7 Nov 2017
- **Citation:** TCN-2017-NCLT-00233
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ncml-industries-limited-cp-no-ib-254-pb-2017-3bb731bd

## Summary

### Background

Central Bank of India, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against NCML Industries Limited, the corporate debtor. The financial creditor claimed default on financial debt granted to the corporate debtor, including fresh working capital limits and LC development facilities. The corporate debtor opposed the admission of the application, arguing it was incomplete and not maintainable without joining the lead bank.

## Facts

Central Bank of India, the financial creditor, sought to initiate Corporate Insolvency Resolution Process (CIRP) against NCML Industries Limited, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditor had granted fresh working capital limits (FLC) of Rs. 40 crores to the corporate debtor on 17.09.2012, which was subsequently renewed. Further debt was granted upon review-cum-enhancement proposal, increasing the FLC limit to Rs. 50 crores on 13.11.2013, along with a fresh limit as CC (Hypothecation) for Rs. 7 crores. The principal amount in default under the CC (Hypothecation) limit as on 25.07.2017 was claimed to be Rs. 9,93,34,797, and the default amount towards LC development as on 25.07.2017 was claimed to be Rs.

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor is complete and satisfies the requirements …

**Ratio:** The proforma for applications under the Insolvency and Bankruptcy Code, 2016, as

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**Reasoning:** The NCLT found that the financial creditor had provided the particulars of financial debt

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**Interpretation:** The court interpreted the application requirements under the IBC and related

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**Application:** The court applied the ratio to the facts by examining the financial creditor's

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Respondents:** NCML Industries…; Central Bank of…

## Timeline

- **1996-09-26 — Incorporation of…**: NCML Industries Limited…
- **2012-09-17 — Grant of Fresh Working…**: Rs. 40 crores fresh working capital limit…

## 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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