# In the matter of Radheshyam Agro Products Pvt. Ltd. C.P. (I B) No. 459-7-NCLT-AHM-2018

> NCLT judgment dated 2019-09-20. Citation: TCN-2019-NCLT-01336. The case pertains to an I.B. Petition filed by Bank of India under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 20 Sept 2019
- **Citation:** TCN-2019-NCLT-01336
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/radheshyam-agro-products-pvt-ltd-cp-i-b-no-459-7-nclt-ahm-2018-5918bd87

## Summary

### Background

The case pertains to an I.B. Petition filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Radheshyam Agro Products Pvt. Ltd. for defaulting on loan repayment. Bank of India, the financial creditor, is incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. The application was filed by an authorized officer, Shri Brij Mohan Meena. The corporate debtor, Radheshyam Agro Products Pvt. Ltd., was incorporated on 05.01.2010.

## Facts

Radheshyam Agro Products Pvt. Ltd. (Corporate Debtor) availed loan facilities from Bank of India (Financial Creditor). The initial loan was Rs. 21.00 Crores, comprising a term loan of Rs. 14.00 Crores and a cash credit facility of Rs. 7.00 Crores, sanctioned on 03.07.2010, secured by a mortgage of land and building. The loan/CC was enhanced to Rs. 26.76 Crores on 05.09.2011 and further restructured to Rs. 34.69 Crores on 23.12.2013. The Corporate Debtor defaulted on repayments, with the date of default being 05.11.2014. Bank of India claimed dues of Rs. 56,41,402,627.03 as of 27.07.2018. The Corporate Debtor submitted a revised One Time Settlement (OTS) proposal on 01.06.2016, which was not accepted by the Bank. The Bank initiated SARFAESI proceedings and filed an

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## Issues and analysis

### Issue 1: Whether the I.B. Petition filed by Bank of India under Section 7 of the Insolvency and Bankruptcy …

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

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**Reasoning:** The NCLT considered the material papers filed by the Petitioner Bank and found that the

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The NCLT applied Section 7 to the facts of the case, finding that Bank of

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Bank of…
- **Respondents:** Radheshyam Agro…

## Timeline

- **2010-01-05 — Incorporation of…**: Radheshyam Agro Products…
- **2010-07-03 — Initial Loan…**: Bank of India sanctioned a term loan and CC of…

## 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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