# In the matter of Oaisis Alcohol Limited CP (IB) No.3049-MB.IV-2019

> NCLT judgment dated 2020-08-04. Citation: TCN-2020-NCLT-00903. The case involves a petition filed by The Janata Sahakari Bank Ltd. (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 4 Aug 2020
- **Citation:** TCN-2020-NCLT-00903
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/oaisis-alcohol-limited-cp-ib-no3049-mbiv-2019-29159c7f

## Summary

### Background

The case involves a petition filed by The Janata Sahakari Bank Ltd. (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), to initiate Corporate Insolvency Resolution Process (CIRP) against Oaisis Alcohol Limited (Corporate Debtor). The petition was filed due to the Corporate Debtor's failure to make payment of a sum of ₹34,10,18,430.39 as principal and ₹6,71,33,068.29 as interest as on 23.12.2018. An earlier petition filed by the Financial Creditor was withdrawn to allow for renegotiation and restructuring of the facilities extended to the Corporate Debtor, but the restructuring exercise failed.

## Facts

The Janata Sahakari Bank Ltd. (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Oaisis Alcohol Limited (Corporate Debtor). The Corporate Debtor is an unlisted public company incorporated on 21.01.2002. The petition was filed on 14.08.2019 due to the Corporate Debtor's failure to pay ₹34,10,18,430.39 as principal and ₹6,71,33,068.29 as interest as on 23.12.2018, which is the date of default. The Financial Creditor had extended credit facilities to the tune of about ₹63.30 crore against mortgage and first charge over its immovable and hypothecation of movable properties. The claim of the Financial Creditor arose out of a judgment and decree dated

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor under Section 7 of the IBC for initiating CIRP …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The Adjudicating Authority considered the documents submitted by the Financial Creditor,

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to recover

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**Application:** The Adjudicating Authority applied the provisions of Section 7 of the IBC to

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** The Janata…
- **Respondents:** Oaisis Alcohol…
- **Advocates:** Avinash Rajan…; Suddhasatt…

## Timeline

- **2002-01-21 — Incorporation of…**: Oaisis Alcohol Limited incorporated…
- **2017-03-23 — Arbitral Tribunal…**: Arbitral Tribunal granted a judgment and…

## 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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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/oaisis-alcohol-limited-cp-ib-no3049-mbiv-2019-29159c7f