# In the matter of DATTAR CERAMIC PRIVATE LIMITED

> NCLT judgment dated 2025-06-09. Citation: TCN-2025-NCLT-00002. Indian Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 9 Jun 2025
- **Citation:** TCN-2025-NCLT-00002
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dattar-ceramic-private-limited-0e586670

## Summary

### Background

Indian Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Dattar Ceramic Private Limited, the Corporate Debtor, for defaulting on outstanding dues of Rs. 47,30,18,245/-, including interest. The date of default was stated to be 31.12.2018. The Financial Creditor had sanctioned credit facilities to the Corporate Debtor for establishing a feldspar powder project, including an Open Cash Credit limit, a Term Loan, and a Bank Guarantee limit. The Corporate Debtor accepted the terms and conditions and provided securities, including personal guarantees. Despite availing the credit facilities, the Corporate Debtor defaulted on its repayment obligations. The Financial

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## Facts

Indian Bank, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Dattar Ceramic Private Limited, the Corporate Debtor. The petition was filed on 20.02.2025. The Corporate Debtor defaulted on payments amounting to Rs. 47,30,18,245/-, including interest, with the date of default being 31.12.2018. Indian Bank had sanctioned credit facilities to Dattar Ceramic Private Limited for a feldspar powder project, including an Open Cash Credit (OCC) limit of Rs. 6.00 crores, a Term Loan of Rs. 18.00 crores, and a Bank Guarantee limit of Rs. 1.00 crore. These facilities were sanctioned vide a letter dated 16.03.2017. The Corporate Debtor accepted the terms and

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has fulfilled all the requirements under Section 7 of the Insolvency …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 requires the Financial Creditor to

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**Reasoning:** The Adjudicating Authority found that the Financial Creditor had established the

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** In this case, the Financial Creditor, Indian Bank, provided sufficient evidence

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## Parties

- **Judges:** SHAMMI…; SANJEEV S…
- **Appellants:** Indian…
- **Respondents:** Dattar Ceramic…; Dattar Ceramic…

## Timeline

- **2017-03-16 — Sanction of Credit…**: Indian Bank sanctioned credit facilities to Dattar Ceramic Private Limited, including an…
- **2018-12-31 — Date of D…**: Dattar Ceramic Private Limited defaulted on payments amounting to Rs. 47,30,18,245/-,…

## 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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