# In the matter of NSR Elkemet Private Limited CP-604-(IB)-CB-2017

> NCLT judgment dated 2017-11-02. Citation: TCN-2017-NCLT-00253. ICICI Bank Limited filed a company petition against M/s. NSR Elkemet Private Limited under…

- **Court:** NCLT
- **Order date:** 2 Nov 2017
- **Citation:** TCN-2017-NCLT-00253
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nsr-elkemet-private-limited-cp-604-ib-cb-2017-aac6cbad

## Summary

### Background

ICICI Bank Limited filed a company petition against M/s. NSR Elkemet Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, due to the respondent's inability to repay the loan. The corporate debtor availed credit facilities aggregating to Rs. 120 Million. The Financial Creditor claimed an amount of Rs. 13,40,00,355.91 as of 04.09.2017, along with further interest and charges.

## Facts

ICICI Bank Limited, a banking company, filed a petition against M/s. NSR Elkemet Private Limited, a company registered under the Companies Act, 1956, engaged in manufacturing, buying, selling, importing, and dealing in various components and equipment. NSR Elkemet Private Limited had availed credit facilities aggregating to Rs. 120 Million, including cash credit facilities, a Rupee Term Loan, and non-fund based limits in the form of Letter of Credit and Bank Guarantee. As of 04.09.2017, the outstanding amount was Rs. 13,40,00,355.91. The loan was secured by hypothecation and mortgage of the corporate debtor's assets, including industrial properties valued at Rs. 15.78 crores and commercial property valued at Rs. 2.75 Crores. ICICI Bank had also filed separate Original

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in repayment …

**Ratio:** The ratio is based on the principle that if a corporate debtor defaults in repaying its

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had defaulted in the repayment

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**Interpretation:** Section 7 of the IBC, 2016 allows a financial creditor to initiate CIRP against

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**Application:** In this case, the Corporate Debtor failed to repay the loan amount to ICICI

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** ICICI Bank…
- **Respondents:** NSR Elkemet…

## Timeline

- **2013-12-14 — Credit Armamen…**: Credit facilities were…
- **2016-07-01 — Recall N…**: Financial Creditor issued a recall…

## 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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