# In the matter of Blue Cross Road Solutions Limited CP (IB) 4364-MB-2019

> NCLT judgment dated 2023-02-09. Citation: TCN-2023-NCLT-04702. The case pertains to a petition filed by Janata Sahakari Bank Limited under Section 7 of the…

- **Court:** NCLT
- **Order date:** 9 Feb 2023
- **Citation:** TCN-2023-NCLT-04702
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/blue-cross-road-solutions-limited-cp-ib-4364-mb-2019-24e153f4

## Summary

### Background

The case pertains to a petition filed by Janata Sahakari Bank Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Blue Cross Road Solutions Limited, the Corporate Debtor. The Financial Creditor claimed a default of Rs. 5,49,76,638/- along with accrued interest. The Corporate Debtor had approached the Petitioner for a Cash Credit Facility, which was granted and disbursed. The Corporate Debtor defaulted in repayment, leading to the filing of this petition.

## Facts

Janata Sahakari Bank Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Blue Cross Road Solutions Limited (Corporate Debtor). The Corporate Debtor had initially been named M/s Torrent Petrochem Limited before changing its name. In October 2014, the Corporate Debtor approached the Financial Creditor for a Cash Credit Facility of Rs. 10,00,00,000/-. The Financial Creditor disbursed Rs. 5,50,00,000/- on 16.10.2014. The Cash Credit Facility was offered at an interest rate of 15% p.a. Promoters of the Corporate Debtor executed a Mortgage Deed dated 08.01.2015. The Corporate Debtor defaulted in repayment, with the date of default stated as 05.09.2019.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in paying the financial debts of more than Rs. 1 Lakh as per …

**Ratio:** Section 4 of the IBC specifies the minimum amount of default for initiating CIRP. Section

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**Reasoning:** The Adjudicating Authority noted that there was no dispute over the fact that the

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**Interpretation:** The interpretation of Section 4 and 5(8) of the IBC is crucial in determining

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**Application:** In this case, the Corporate Debtor defaulted in paying a financial debt

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Janata Sahakari…
- **Respondents:** Blue Cross Road…

## Timeline

- **2014-10-01 — Corporate Debtor approached for Cash Credit…**: The Corporate Debtor approached the Financial Creditor seeking Cash Credit Facility for…
- **2014-10-16 — Disbursement…**: The Financial Creditor disbursed an amount of…

## 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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