# In the matter of Octopus Papers Limited CP (IB) No. 379-7-NCLT-AHM-2019

> NCLT judgment dated 2020-12-11. Citation: TCN-2020-NCLT-00103. Central Bank of India, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 11 Dec 2020
- **Citation:** TCN-2020-NCLT-00103
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/octopus-papers-limited-cp-ib-no-379-7-nclt-ahm-2019-9f582f82

## 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 Octopus Papers Limited, the Corporate Debtor. The application was based on the Corporate Debtor's alleged default in paying a financial debt of Rs. 11,62,87,702/-. Notices were served, and the matter was adjourned multiple times at the request of the Corporate Debtor's counsel. Eventually, the matter was heard ex-parte as no one appeared for the Corporate Debtor.

## Facts

Central Bank of India (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Octopus Papers Limited (Corporate Debtor). The basis for the application was the Corporate Debtor's default in paying a financial debt of Rs. 11,62,87,702/-. The date of default was stated to be 05.05.2019. The Financial Creditor produced a letter of disbursement of the loan and a demand promissory note executed by the Corporate Debtor. The Corporate Debtor was served notice of the application, and the matter was adjourned several times at the Corporate Debtor's request. Ultimately, no one appeared for the Corporate Debtor, and the matter was heard ex-parte. The Financial Creditor

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has established the existence of a financial debt and the Corporate …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court reasoned that the Financial Creditor had produced sufficient evidence,

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**Interpretation:** Section 7 of the IB Code is interpreted to mean that if a financial creditor

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**Application:** In this case, the Financial Creditor provided evidence of the loan disbursement

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Central Bank K.N.…
- **Respondents:** Octopus Pap…; M/s Octopus…

## Timeline

- **2019-05-05 — Date of D…**: The Corporate Debtor allegedly…
- **2020-09-16 — Ex-parte Heari…**: The matter was listed for ex-parte hearing as no one was appearing for the Corporate…

## Legal provisions

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

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