# In the matter of Bush Tea Co. Private Limited C.P (IB) No. 1381-KB-2020

> NCLT judgment dated 2022-04-29. Citation: TCN-2022-NCLT-02964. UCO Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against…

- **Court:** NCLT
- **Order date:** 29 Apr 2022
- **Citation:** TCN-2022-NCLT-02964
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bush-tea-co-private-limited-cp-ib-no-1381-kb-2020-ffef8104

## Summary

### Background

UCO Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Bush Tea Company Private Limited, claiming a default of Rs. 48,22,49,567.54. The Financial Creditor had sanctioned credit facilities to the Corporate Debtor, which were later enhanced. The Corporate Debtor failed to adhere to the terms and conditions of the sanction letter, leading to the account being declared as NPA on April 19, 2019. A one-time settlement (OTS) was agreed upon, but the Corporate Debtor failed to pay as per the agreed terms.

## Facts

UCO Bank, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Bush Tea Company Private Limited, the Corporate Debtor. The Corporate Debtor had approached the Financial Creditor for credit facilities, which were sanctioned and later enhanced to Rs. 40,00,00,000. To avail the credit facility, the Corporate Debtor executed several security documents and hypothecated assets. The Corporate Debtor failed to make repayments, leading to the account being declared as NPA on April 19, 2019. The Financial Creditor issued a notice under Section 13(2) of the SARFAESI Act, 2002. A one-time settlement (OTS) was agreed upon, but the Corporate Debtor failed to pay as per the agreed terms. The total amount claimed in default by

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## Issues and analysis

### Issue 1: Whether the present petition made by the Financial Creditor is complete in all respects as required …

**Ratio:** The court must determine if the petition meets the legal requirements for initiating CIRP

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**Reasoning:** The court found that the petition was

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**Interpretation:** Section 7 of the IBC outlines the requirements for initiating CIRP by a

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**Application:** The court determined that the petition filed by UCO Bank met all the necessary

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** UCO B…
- **Respondents:** Bush Tea Company…
- **Advocates:** Joy S…; Santosh Kum…; +3 more

## Timeline

- **2018-01-01 — Enhancement of Credit…**: The Corporate Debtor's credit facility…
- **2019-01-31 — Date of D…**: The date of default is…

## 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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