# In the matter of Amritpur Tea Company Ltd.

> NCLT judgment dated 2023-09-27. Citation: TCN-2023-NCLT-01451. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Sept 2023
- **Citation:** TCN-2023-NCLT-01451
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amritpur-tea-company-ltd-80e5b19f

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by City Union Bank Limited, the Financial Creditor, against Amritpur Tea Company Limited, the Corporate Debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated on January 10, 1913. The Financial Creditor claimed a default of Rs. 12,60,90,830 as of September 01, 2022, with the date of default being the date of classifying the account as Non-Performing Asset (NPA), i.e., December 31, 2019.

## Facts

City Union Bank Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Amritpur Tea Company Limited, the Corporate Debtor. The Corporate Debtor was incorporated on January 10, 1913. The Financial Creditor claimed that the Corporate Debtor defaulted on a debt of Rs. 12,60,90,830 as of September 01, 2022. The date of default was classified as December 31, 2019, when the loan account was declared NPA. The Financial Creditor had sanctioned and disbursed Rs. 12,20,00,000 to the Corporate Debtor over time. The Corporate Debtor executed various loan and security documents, including mortgages and hypothecation agreements, to secure the credit facilities. The Corporate Debtor failed to appear before the

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** The ratio is based on the interpretation of Section 7 of the Insolvency and Bankruptcy

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**Reasoning:** The court reasoned that the Financial Creditor had provided sufficient evidence to

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**Interpretation:** The interpretation involves understanding the requirements of Section 7 of the

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** RohitKa…; D. Ar…
- **Appellants:** City Union Bank…
- **Respondents:** Amritpur Tea…
- **Advocates:** Aasiya…; Mayukh…

## Timeline

- **1913-01-10 — Incorporation of…**: Amritpur Tea Company…
- **2015-06-29 — Sanctioned…**: OSL- Terms EMI Loan A/c No.: 501812080011182 had sanctioned a limit of Rs. 6 Crore only…

## 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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