# In the matter of Rolta India Limited CP(IB)3561(MB)-2018

> NCLT judgment dated 2019-05-01. Citation: TCN-2019-NCLT-03572. Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 1 May 2019
- **Citation:** TCN-2019-NCLT-03572
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rolta-india-limited-cpib3561mb-2018-0bdf13e3

## Summary

### Background

Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Rolta India Limited for the recovery of Rs. 1233,54,79,298/- due as on 7.9.2018. The petition was based on a Reserve Bank of India (RBI) circular dated 12.2.2018.

## Facts

Union Bank of India, a financial creditor, filed a petition under Section 7 of the IBC, 2016, to initiate CIRP against Rolta India Limited, the corporate debtor, for the realization of Rs. 1233,54,79,298/- due as of 7.9.2018. The petition was based on an RBI circular dated 12.2.2018. Rolta India Limited had challenged the RBI circular in Writ Petition No. 237/2019 before the Supreme Court. A consortium meeting of lenders was convened on 5.2.2019 to discuss the status of the NCLT application. The Supreme Court, in its order dated 12.4.2019, clarified that the status quo order had ended and that proceedings based on the RBI circular should end.

## Issues and analysis

### Issue 1: Whether the petition filed by Union Bank of India under Section 7 of the IBC, 2016, based on the …

**Ratio:** The Supreme Court has struck down the RBI Circular, and proceedings based on it must come

…

**Reasoning:** The NCLT relied on the Supreme Court's order, which stated that where the RBI Circular

…

**Interpretation:** The Supreme Court's order implies that any proceedings initiated based on the

…

**Application:** Since the petition by Union Bank of India was based on the RBI Circular, and

…

## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Union Bank of…
- **Respondents:** Rolta India…

## Timeline

- **2018-02-12 — RBI Circula…**: The petition was based on Reserve Bank…
- **2018-09-07 — Amount Du…**: Rs.1233,54,79,298/- due…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/rolta-india-limited-cpib3561mb-2018-0bdf13e3