# In the matter of OSIL Exports Limited CP (IB) No. 128-Chd-Hry-2017

> NCLT judgment dated 2018-01-31. Citation: TCN-2018-NCLT-01887. The case pertains to an application filed by Bank of India, a financial creditor, under Section…

- **Court:** NCLT
- **Order date:** 31 Jan 2018
- **Citation:** TCN-2018-NCLT-01887
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/osil-exports-limited-cp-ib-no-128-chd-hry-2017-cc0127c0

## Summary

### Background

The case pertains to an application filed by Bank of India, a financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the corporate insolvency resolution process against OSIL Exports Limited, the corporate debtor. The corporate debtor was availing loan/credit facilities from a consortium of banks since 1996. The account of the corporate debtor was declared NPA on 31.12.2015, with a total outstanding amount of ₹120.89 crores. The petitioner bank also issued a notice under Section 13(2) of the SARFAESI Act, 2002.

## Facts

Bank of India, a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the corporate insolvency resolution process against OSIL Exports Limited. OSIL Exports Limited had been availing loan/credit facilities from a consortium of banks since 1996. The corporate debtor's account was declared NPA on 31.12.2015, with a total outstanding amount of ₹120.89 crores. The bank issued a notice under Section 13(2) of the SARFAESI Act, 2002. The respondent-corporate debtor was incorporated on 01.04.2008. The corporate debtor has an authorized capital of ₹25,00,00,000/- and a paid-up capital of ₹13,55,75,880/-. The total sanction granted to the respondent-corporate debtor towards the loan facilities is to the tune of ₹154.63

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7(5) of the Insolvency and Bankruptcy Code, 2016, stipulates that the

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**Reasoning:** The court found that the application filed by the petitioner-financial creditor was

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**Interpretation:** Section 7 of the IBC outlines the procedure for initiating the corporate

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**Application:** The court applied Section 7(5) of the Code to the facts of the case and

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** Bank of…
- **Respondents:** OSIL Exports…

## Timeline

- **1996-01-01 — Loan/Credit Fa…**: OSIL Exports Limited started availing…
- **2008-04-01 — Incorporation of…**: OSIL Exports Limited was incorporated as a…

## 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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