# In the matter of RMOL Engineering and Offshore Ltd. C.P. (IB) No. 171-7-NCLT-AHM-2017

> NCLT judgment dated 2019-08-21. Citation: TCN-2019-NCLT-01873. The case pertains to an application filed by IFCI Ltd., the Petitioner-Financial Creditor,…

- **Court:** NCLT
- **Order date:** 21 Aug 2019
- **Citation:** TCN-2019-NCLT-01873
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rmol-engineering-and-offshore-ltd-cp-ib-no-171-7-nclt-ahm-2017-001239bb

## Summary

### Background

The case pertains to an application filed by IFCI Ltd., the Petitioner-Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against RMOL Engineering and Offshore Ltd. (erstwhile Reliance Marine & Offshore Ltd.), the Respondent-Corporate Debtor. The petition was initially filed on November 10, 2017, and later amended via Miscellaneous Application No. 08 of 2019 to reflect the change in the corporate debtor's name. The financial creditor claimed a default of Rs. 159,61,82,597 as of September 30, 2017, along with further interest. The corporate debtor opposed the petition, citing various reasons, including the existence of securities and an agreement clause requiring the

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## Facts

IFCI Ltd. (the Financial Creditor) sanctioned a corporate loan to Pipavav Marine and Offshore Ltd. (later renamed Reliance Marine & Offshore Ltd. and subsequently RMOL Engineering and Offshore Ltd., the Corporate Debtor) up to Rs. 202,22,00,000 on March 30, 2013. The loan was disbursed in tranches between September 19, 2013, and September 24, 2013. The Corporate Debtor provided various securities, including pledges of shares, mortgages, and personal and corporate guarantees. Due to defaults in repayment, the Financial Creditor filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 159,61,82,597 as of September 30, 2017, along with interest. The Corporate Debtor admitted to the loan liability but disputed the

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) is a self-contained code with an overriding

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**Reasoning:** The Adjudicating Authority relied on precedents from the Supreme Court and the NCLAT,

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**Interpretation:** The IBC provides a statutory right to financial creditors to initiate CIRP upon

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**Application:** In this case, the existence of securities and the agreement clause requiring

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** IFCI…
- **Respondents:** RMOL Engineering…

## Timeline

- **2013-03-30 — Corporate Loan…**: IFCI Ltd. sanctioned a corporate loan up to Rs. 202,22,00,000 to Pipavav Marine and…
- **2013-09-19 — First Disbu…**: Rs. 50 Crore d…

## 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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