# In the matter of Cubatics Industries Private Limited

> NCLT judgment dated 2025-06-04. Citation: TCN-2025-NCLT-00020. The Cosmos Co-operative Bank Ltd. filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 4 Jun 2025
- **Citation:** TCN-2025-NCLT-00020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cubatics-industries-private-limited-7b0bc8d5

## Summary

### Background

The Cosmos Co-operative Bank Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Cubatics Industries Private Limited. The Financial Creditor claimed a total outstanding amount of Rs. 20,55,59,549 as of 31.03.2025, including a principal amount of Rs. 19,00,00,000. The Corporate Debtor's account was classified as NPA on 14.01.2024, and a SARFAESI notice was issued on 13.08.2024. The Financial Creditor disbursed a sum of Rs. 10 Crores as cash credit facilities on 04.04.2016 and enhanced the cash credit limit by Rs. 9 Crores on 02.11.2021.

## Facts

The Cosmos Co-operative Bank Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Cubatics Industries Private Limited (Corporate Debtor). The Financial Creditor claimed a total outstanding amount of Rs. 20,55,59,549 as of 31.03.2025, including a principal amount of Rs. 19,00,00,000. The Corporate Debtor's account was classified as NPA on 14.01.2024, and a SARFAESI notice was issued on 13.08.2024, demanding Rs. 19.96 Crores as of 31.07.2024. The Corporate Debtor paid Rs. 1,33,67,576 between 01.08.2024 and 31.01.2025 in response to the SARFAESI notice. The Financial Creditor disbursed Rs. 10 Crores as cash credit facilities on 04.04.2016 and

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## Issues and analysis

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

**Ratio:** Section 7 of the IBC and the Insolvency and Bankruptcy (Application to Adjudicating

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**Reasoning:** The Adjudicating Authority found that the application filed by the Financial Creditor was

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to initiate

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**Application:** In this case, the Adjudicating Authority determined that the application filed

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** The Cosmos…
- **Respondents:** M/s Cubatics…
- **Advocates:** Bhupendra…; Somesh Chh…

## Timeline

- **2015-08-12 — Sanction of Cash Credit…**: Applicant sanctioned Rs. 10 Crores as cash…
- **2016-04-04 — Disbursement of Cash…**: Rs. 10 Crores disbursed…

## 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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