# In the matter of Rotomac Global Pvt. Ltd. CP (IB) No. 70,71-ALD-2017

> NCLT judgment dated 2017-09-20. Citation: TCN-2017-NCLT-00386. The case involves two insolvency applications, CP No.(IB)70/ALD/2017 and CP No.(IB)71/ALD/2017,…

- **Court:** NCLT
- **Order date:** 20 Sept 2017
- **Citation:** TCN-2017-NCLT-00386
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rotomac-global-pvt-ltd-cp-ib-no-7071-ald-2017-5e18221c

## Summary

### Background

The case involves two insolvency applications, CP No.(IB)70/ALD/2017 and CP No.(IB)71/ALD/2017, filed by Bank of Baroda against Rotomac Global Private Limited and Rotomac Exports Private Limited, respectively. The applications were filed under Section 7 of the Insolvency & Bankruptcy Code, 2016, read with Rule 4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP). Rotomac Global Private Limited is the principal borrower, while Rotomac Exports Private Limited is the guarantor.

## Facts

Bank of Baroda filed insolvency applications against Rotomac Global Pvt. Ltd. and Rotomac Exports Pvt. Ltd. under Section 7 of the Insolvency & Bankruptcy Code, 2016. Rotomac Global Pvt. Ltd. is the principal borrower, and Rotomac Exports Pvt. Ltd. is the guarantor. The Corporate Debtor Company has committed default in making payment of its debts for an outstanding amount of Rs.553,78,21,954.66/-. The admitted outstanding debts due by the Corporate Debtors in respect of other secured creditors also come around to Rs.4,420/- Crores. The Corporate Debtor Company has been declared as a wilful defaulter. The Applicant Bank has produced documents including a letter from the Borrower to the financial Creditor dated March 14th, 2016, acknowledging debt owed to it under

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## Issues and analysis

### Issue 1: Whether the present applications fulfill the requirement of Section 7 read with Section 3(11) & …

**Ratio:** Section 3(11) of the I&B Code defines 'debt' as a liability or obligation in respect

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**Reasoning:** The NCLT found that the present applications were filed in conformity with Section 7 of

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**Interpretation:** The legal position in I & B Code has recently been settled by Hon'ble Apex

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**Application:** The Corporate Debtor Companies have admitted their loan liability to the extent

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## Parties

- **Judges:** SH. HARIHAR…
- **Appellants:** Bank of B…
- **Respondents:** ROTOMAC GLOBAL…

## Timeline

- **2017-09-20 — Judgment/Order…**: Judgment/Order delivered on 20.09.2017,…
- **2016-03-14 — Borrower's…**: A letter from the Borrower to the financial Creditor dated March 14th, 2016 acknowledging…

## 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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