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

> NCLT judgment dated 2019-05-01. Citation: TCN-2019-NCLT-03587. 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-03587
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rolta-india-limited-cpib3561mb-2018-1c5012b5

## 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. The Corporate Debtor challenged the RBI circular in the Supreme Court via Writ Petition No. 237/2019.

## 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 challenged the RBI circular in the Supreme Court via Writ Petition No. 237/2019. A consortium meeting of lenders was convened on 5.2.2019 to discuss the NCLT application status. The Supreme Court, in its order dated 2.4.2019 in ‘Dharani Sugars and Chemicals Ltd v. Union of India and Ors.’, struck down the RBI circular. The NCLT application was filed on 10.9.2018 and came up for hearing on 25.1.2019 but was deferred.

## 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 dated 12.2.2018 in the case of

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**Reasoning:** The NCLT reasoned that since the petition was based on the RBI circular, which the

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**Interpretation:** The Supreme Court's judgment in 'Dharani Sugars' invalidated the RBI circular,

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**Application:** Since the Union Bank of India's petition was based on the invalidated RBI

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## Parties

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

## Timeline

- **2018-02-12 — RBI Circula…**: Date of the RBI circular on…
- **2018-09-07 — Debt Due…**: Date on which the debt of Rs.…

## 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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