# In the matter of BEST & CROMPTON ENGINEERING PROJECTS LIMITED

> NCLT judgment dated 2025-04-04. Citation: TCN-2025-NCLT-01021. Central Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Apr 2025
- **Citation:** TCN-2025-NCLT-01021
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/best-amp-crompton-engineering-projects-limited-339b339d

## Summary

### Background

Central Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Best & Crompton Engineering Projects Limited.

## Facts

Central Bank of India, the Financial Creditor, filed a petition under Section 7 of the IBC, 2016, against Best & Crompton Engineering Projects Limited.

The Corporate Debtor was granted credit facilities by the Banks in December 2010.

The Corporate Debtor's account was classified as NPA due to non-servicing of interest.

The consortium Banks filed an application before the DRT for recovery of loan amount along with interest.

The DRT passed an order on 18.05.2018 and issued a debt recovery certificate on 14.08.2018 for a sum of Rs. 507,22,85,234.93.

The Corporate Debtor defaulted to repay the amount despite a demand notice dated 14.08.2018.

The Corporate Debtor acknowledged the debt in its balance sheets for the financial year 2021-2022.

…

## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** Entries in books of accounts and/or balance sheets of a Corporate Debtor would amount to

…

**Reasoning:** The Corporate Debtor acknowledged the debt in its balance sheets and through an OTS

…

**Interpretation:** The Adjudicating Authority interpreted the acknowledgment of debt as extending

…

**Application:** The Adjudicating Authority applied the principle that acknowledgment of debt

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Central Bank of…
- **Respondents:** Best & Crompton…; Best & Crompton…
- **Other parties:** V. Dura…
- **Advocates:** Ebenezar I…; Rohan Rajas…

## Timeline

- **2010-12-01 — Credit Facilities…**: Banks granted credit…
- **2014-04-15 — Application be…**: Consortium Banks filed an application before the DRT for recovery of loan amount along…

## 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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