# In the matter of Samyu Glass Private Ltd. CP (IB) No. 153-7-HDB-2019

> NCLT judgment dated 2019-10-18. Citation: TCN-2019-NCLT-00919. Andhra Bank, a financial creditor, filed a petition against M/s. Samyu Glass Private Limited,…

- **Court:** NCLT
- **Order date:** 18 Oct 2019
- **Citation:** TCN-2019-NCLT-00919
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/samyu-glass-private-ltd-cp-ib-no-153-7-hdb-2019-10c250f5

## Summary

### Background

Andhra Bank, a financial creditor, filed a petition against M/s. Samyu Glass Private Limited, the corporate debtor, for defaulting on a payment of Rs. 35,00,74,293/-. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP), granting a moratorium, and appointing an Interim Resolution Professional (IRP). The corporate debtor had availed credit facilities from the financial creditor since 2010, which were sanctioned, enhanced, and renewed periodically until 2014. The corporate debtor admitted to the default.

## Facts

Andhra Bank, the financial creditor, filed a petition against M/s. Samyu Glass Private Limited, the corporate debtor, due to a default of Rs. 35,00,74,293/-. The corporate debtor had availed credit facilities since 2010, with renewals until 2014. Specific credit facilities included a Term Loan of Rs 30.00 Crores, OCC Limit of Rs 1 Crores, Letter of Credit (Inland/Foreign) of Rs.10.00 Crores and PC/FUBD of Rs.3.00 Crores in November 2009. In March 2011, the corporate debtor availed enhancement of Open Cash Credit (OCC) from Rs.1.00 Crores to Rs.1.95 Crores, PC/ UBD from Rs. 3.00 Crores to Rs. 3. 82 Crores, and further availed a Fresh FDBP/FUBD Limit of Rs. 5.00 Crores, ILC/FLC and fresh limit of Rs. 2.00 Crores, and Sanction of B.G. Limit of Rs. 0.50 Crores. In August

…

## Issues and analysis

### Issue 1: Whether the petition filed by the Financial …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

…

**Reasoning:** The court considered the provisions of Section 7 of the IBC and the submissions made by

…

**Interpretation:** Section 7 provides the legal basis for a financial creditor to initiate CIRP

…

**Application:** The court applied Section 7 to the facts of the case, noting that Andhra Bank,

…

## Parties

- **Judges:** Ratakonda…; Narender Kumar…
- **Appellants:** Andhra…
- **Respondents:** Samyu Glass…; M/s Samyu Glass…

## Timeline

- **2009-11-01 — Credit Facilities…**: The Corporate Debtor availed a Term Loan of Rs 30.00 Crores, OCC Limit of Rs 1 Crores,…
- **2011-03-01 — Enhancement of Credit…**: The Corporate Debtor availed enhancement of Open Cash Credit (OCC) from Rs.1.00 Crores to…

## 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/samyu-glass-private-ltd-cp-ib-no-153-7-hdb-2019-10c250f5