# In the matter of Birbhum Chemicals and Fertilisers Ltd.

> NCLT judgment dated 2024-01-08. Citation: TCN-2024-NCLT-03249. The case pertains to an application filed by Canara Bank under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Jan 2024
- **Citation:** TCN-2024-NCLT-03249
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/birbhum-chemicals-and-fertilisers-ltd-0365870d

## Summary

### Background

The case pertains to an application filed by Canara Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Birbhum Chemicals and Fertilisers Ltd. The application was filed due to the corporate debtor's default on a financial debt.

## Facts

Canara Bank, the Financial Creditor, advanced Rs. 50 crores to Birbhum Chemicals and Fertilisers Ltd, the Corporate Debtor, through WC-OCC/OCBD, as per sanction letters dated 2023-12-23 and 2023-02-27. The Corporate Debtor defaulted on the repayment, with the date of default being 2023-06-30, the date the account was declared NPA. The total amount in default was Rs. 50,70,30,550.53/-, comprising Rs. 49,94,22,414/- towards principal and Rs. 76,07,664/- towards interest. The Financial Creditor filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP. The Corporate Debtor did not dispute the claim made by the Financial Creditor during the hearing. The application was supported by necessary documents, including loan agreements,

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## Issues and analysis

### Issue 1: Whether the application filed by Canara Bank under Section 7 of the Insolvency and Bankruptcy Code, …

**Ratio:** The adjudicating authority has merely to see the records of the information utility or

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**Reasoning:** The court considered the evidence presented by the Financial Creditor, including loan

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**Interpretation:** The court interpreted Section 7 of the IBC and relevant Supreme Court

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**Application:** The court applied the ratio to the facts of the case, finding that a financial

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## Parties

- **Judges:** BIDISHA BA…; SHRI. D.A…
- **Appellants:** Canara…
- **Respondents:** Birbhum Chemicals…
- **Advocates:** Sujash Ghosh…; Sankari…; +3 more

## Timeline

- **2023-12-23 — Sanction Lett…**: Date of one of the sanction letters for the loan advanced by Canara Bank to Birbhum…
- **2023-02-27 — Sanction Lett…**: Date of one of the sanction letters for the loan advanced by Canara Bank to Birbhum…

## 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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