# In the matter of White & Brown & Alloys Castings Private Limited C.P. (IB) No. 947-KB-2018

> NCLT judgment dated 2019-08-26. Citation: TCN-2019-NCLT-01767. Bank of India filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 26 Aug 2019
- **Citation:** TCN-2019-NCLT-01767
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/white-brown-alloys-castings-private-limited-cp-ib-no-947-kb-2018-1ccc24cb

## Summary

### Background

Bank of India filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against White & Brown Alloy Castings Pvt. Ltd., seeking initiation of Corporate Insolvency Resolution Process (CIRP) due to the corporate debtor's failure to repay an outstanding amount of Rs. 13,65,97,120.31. The Financial Creditor presented relevant documents, including the CIBIL Report, to support their claim.

## Facts

Bank of India, the Financial Creditor, filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against White & Brown Alloy Castings Pvt. Ltd., the Corporate Debtor, due to a default of Rs. 13,65,97,120.31. The Tribunal admitted the petition on December 10, 2018, initiating CIRP and appointing Mr. Anil Anchalia as the IRP. The IRP faced non-cooperation from the promoter directors, who withdrew funds after CIRP initiation. The CoC approved the IRP as the Resolution Professional. The RP published an invitation for Expression of Interest (EOI), but only one EOI was received, from the Corporate Debtor's Promoter Director, Mr. Aniruddha Mukherjee. The Resolution Plan submitted by the Promoter and Director was rejected. The RP discovered that the

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be initiated against White & …

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

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**Reasoning:** The Tribunal found that the Corporate Debtor had defaulted on its debt to the Financial

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The Tribunal applied Section 7 to the facts of the case, finding that the

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Bank of…
- **Respondents:** White & Brown…; White & Brown…

## Timeline

- **2018-12-10 — Admission of Petition…**: The Tribunal passed an order admitting the petition and initiating Corporate Insolvency…
- **2019-01-11 — IRP's First Progress…**: The IRP filed its first progress report,…

## 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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