# In the matter of AGRIMAS CHEMICALS LIMITED

> NCLT judgment dated 2025-01-30. Citation: TCN-2025-NCLT-00552. IDBI Bank Ltd. filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 Jan 2025
- **Citation:** TCN-2025-NCLT-00552
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/agrimas-chemicals-limited-8a7459c5

## Summary

### Background

IDBI Bank Ltd. filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Agrimas Chemicals Limited, citing a financial debt of Rs. 25,04,12,402.46/- with a default date of 06.11.2018. The petitioner argues that the corporate debtor failed to discharge its obligation of paying the due debt. The corporate debtor contends that the petition is not maintainable due to concealment of facts, including the existence of a consortium arrangement with State Bank of India and pending OTS proposals and a writ petition before the Delhi High Court.

## Facts

IDBI Bank Ltd. (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Agrimas Chemicals Limited (Corporate Debtor). The financial creditor sanctioned working capital limits of Rs. 16 Crores to the corporate debtor on 19.08.2014, which was later reduced to Rs. 13 Crores on 20.04.2015. The amount was disbursed on 25.06.2015. The financial assistance was recalled on 21.05.2019. A previous CIRP initiated against the corporate debtor was withdrawn on 21.03.2022 after an OTS proposal. The corporate debtor submitted another consortium settlement offer on 28.08.2023 and requested the petitioner to consider sanctioning settlement on 27.10.2023. The petitioner offered an OTS on 30.12.2023. The corporate debtor

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## Issues and analysis

### Issue 1: Whether pendency of an OTS proposal is an impediment for admission of a Petition filed under …

**Ratio:** The mere pendency of OTS negotiations cannot be a ground to deny the statutory right of a

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**Reasoning:** The tribunal relied on the Supreme Court's judgment in Bijnor Urban Cooperative Bank

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**Interpretation:** The pendency of OTS negotiations does not override the statutory right of a

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**Application:** The Corporate Debtor's argument that the pending OTS proposal should prevent

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** IDBI Bank…
- **Respondents:** Agrimas Chemicals…

## Timeline

- **2014-08-19 — Sanction of Working…**: Financial Creditor sanctioned Working Capital Limits of Rs. 16 Crores to the Corporate…
- **2015-04-20 — Reduction of Credit…**: Credit facility was…

## 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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