# In the matter of Oil Country Tubular Ltd. CP (IB) No. 220-7-HDB-2019

> NCLT judgment dated 2020-01-28. Citation: TCN-2020-NCLT-02156. The case involves a petition filed by State Bank of India (Financial Creditor) under Section 7…

- **Court:** NCLT
- **Order date:** 28 Jan 2020
- **Citation:** TCN-2020-NCLT-02156
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/oil-country-tubular-ltd-cp-ib-no-220-7-hdb-2019-081bdf99

## Summary

### Background

The case involves a petition filed by State Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Oil Country Tubular Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Financial Creditor had provided cash credit limits and bank guarantees to the Corporate Debtor. The Corporate Debtor faced operational and marketing issues, leading to restructuring discussions and an eventual OTS proposal, which was not fulfilled.

## Facts

State Bank of India (SBI), the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Oil Country Tubular Limited, the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). SBI had extended credit facilities to Oil Country Tubular Limited, including a cash credit limit of ₹45 Crores and a bank guarantee of ₹37 Crores. The limits were originally sanctioned in 1989 and last renewed on 27.10.2015. The total claim amount was ₹53,84,89,580.48, with the date of default being 31.12.2015, and the account was declared Non-Performing Asset (NPA) on 01.04.2016. Oil Country Tubular Limited faced operational and marketing issues, leading to discussions for restructuring the loan accounts. The

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has proved the existence of a financial debt and default on the part …

**Ratio:** The ratio is based on the interpretation of Section 7 of the Insolvency and Bankruptcy

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**Reasoning:** The Adjudicating Authority relied on the documentary evidence provided by the Financial

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**Interpretation:** The interpretation involves understanding the requirements of Section 7 of the

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** State Bank of…
- **Respondents:** Oil Country…; Oil Country…
- **Advocates:** K.Ai…; Saini Kesh…; +5 more

## Timeline

- **1989-01-01 — Original Sanction of…**: The cash credit limits were…
- **2015-10-27 — Last Renewal of Credit…**: The last renewal of the cash credit…

## 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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