# In the matter of Sri Venkatesa Paper and Board Limited MA-749 & 1292-2019 in CP-1353-IB-2018

> NCLT judgment dated 2019-12-11. Citation: TCN-2019-NCLT-00228. The case involves an application filed by Dena Bank Limited (now Bank of Baroda after…

- **Court:** NCLT
- **Order date:** 11 Dec 2019
- **Citation:** TCN-2019-NCLT-00228
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-venkatesa-paper-and-board-limited-ma-749-1292-2019-in-cp-1353-ib-2018-1aa1ff54

## Summary

### Background

The case involves an application filed by Dena Bank Limited (now Bank of Baroda after amalgamation) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Sri Venkatesa Paper & Board Limited, the Corporate Debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP). Dena Bank initially filed CP/1353/IB/2018. During the pendency of the application, Dena Bank was amalgamated with Bank of Baroda. MA/749/2019 was filed for substitution of Dena Bank's name with Bank of Baroda. The Financial Creditor claimed a total outstanding amount of Rs. 1,16,81,08,629.87 as of 16.10.2018. The Corporate Debtor had availed various credit facilities from the Financial Creditor since 01.09.1998 and subsequently defaulted in repayment. The Corporate

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## Facts

Dena Bank Limited (now Bank of Baroda) filed CP/1353/IB/2018 under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Sri Venkatesa Paper & Board Limited, seeking initiation of CIRP. Dena Bank and Bank of Baroda amalgamated, leading to MA/749/2019 for name substitution. The Financial Creditor claimed Rs. 1,16,81,08,629.87 outstanding as of 16.10.2018. The Corporate Debtor availed credit facilities from 01.09.1998 and defaulted. The Corporate Debtor was declared a sick company by BIFR on 03.09.2002. An OTS proposal failed. The Financial Creditor issued a legal notice on 11.08.2010. The Financial Creditor filed OA-103/2011 before DRT Coimbatore. The Corporate Debtor filed a counter-affidavit admitting to availing facilities and defaulting due to a

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## Issues and analysis

### Issue 1: Whether the application filed by Dena Bank Limited under Section 7 of the Insolvency and Bankruptcy …

**Ratio:** The principle of corporate restructuring and amalgamation allows the successor entity to

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**Reasoning:** The Tribunal considered the notification issued by the Ministry of Finance regarding the

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**Interpretation:** The legal interpretation is that the rights and liabilities of Dena Bank were

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**Application:** The Tribunal allowed MA/749/2019, substituting Bank of Baroda in place of Dena

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Bank of B…
- **Respondents:** M/s. Sri Venkatesa…

## Timeline

- **1998-09-01 — Credit Facilities…**: Corporate Debtor approached Financial…
- **1998-11-09 — Documents E…**: Corporate Debtor executed documents…

## 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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