# In the matter of Radhey Sham Tandon Manufacturing Pvt. Ltd. C.P. No. (IB)-105(PB)-2018

> NCLT judgment dated 2019-02-07. Citation: TCN-2019-NCLT-04960. Oriental Bank of Commerce, the Financial Creditor, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 7 Feb 2019
- **Citation:** TCN-2019-NCLT-04960
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/radhey-sham-tandon-manufacturing-pvt-ltd-cp-no-ib-105pb-2018-bc5a8a39

## Summary

### Background

Oriental Bank of Commerce, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Radhey Sham Tandon (MFG) Private Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor had defaulted on its financial obligations. The Corporate Debtor opposed the admission of the petition, raising objections regarding the qualification of the Interim Resolution Professional (IRP), delay in refiling the petition, and alleged non-compliance with RBI guidelines in declaring the account as a Non-Performing Asset (NPA).

## Facts

Oriental Bank of Commerce, acting as the Financial Creditor, initiated proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Radhey Sham Tandon (MFG) Private Limited, the Corporate Debtor. The Financial Creditor claimed a default of Rs. 30,91,32,122.10 as of 30.12.2017, along with pendentelite interest. The Corporate Debtor's account was declared a Non-Performing Asset (NPA) on 31.03.2016. The Financial Creditor had initially granted an overdraft facility of Rs. 10 lacs on 18.08.2010, followed by a loan facility of Rs. 11.14 crores on 13.10.2010, and subsequent enhancements, reaching Rs. 24.50 crores on 22.06.2015. The Corporate Debtor opposed the petition, citing issues with the IRP's qualifications, delay in refiling the petition, and

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## Issues and analysis

### Issue 1: Whether the proposed Interim Resolution Professional (IRP) is fully qualified and permitted to act …

**Ratio:** The Insolvency and Bankruptcy Code requires that the IRP be fully qualified and permitted

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**Reasoning:** The NCLT examined the communication from the proposed IRP, Shri Manoj Kumar Anand, and

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**Interpretation:** The Code mandates that the IRP must meet specific qualifications and be free

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**Application:** The NCLT applied the ratio to the facts by verifying the credentials and

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## Parties

- **Judges:** M. M. K…; Pradeep R.…
- **Appellants:** Oriental Bank of…
- **Respondents:** M/s. Radhey Sham…

## Timeline

- **2017-12-20 — CIBIL Repor…**: Credit Information Bureau (India) Limited…
- **2017-12-30 — Default…**: Total amount in default as on…

## 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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