# In the matter of NCS Sugars Limited

> NCLT judgment dated 2022-06-24. Citation: TCN-2022-NCLT-02045. The case pertains to a Company Petition filed by Punjab National Bank (formerly Oriental Bank…

- **Court:** NCLT
- **Order date:** 24 Jun 2022
- **Citation:** TCN-2022-NCLT-02045
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ncs-sugars-limited-df0fa364

## Summary

### Background

The case pertains to a Company Petition filed by Punjab National Bank (formerly Oriental Bank of Commerce) as a Financial Creditor, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against NCS Sugars Ltd, the Corporate Debtor, for defaulting on a payment of Rs.226,94,94,093/- as on 31.03.2018. The Financial Creditor claimed that the Corporate Debtor had approached a consortium of banks in 2002 and was disbursed sums aggregating to Rs.130,37,47,281/-. Despite the Corporate Debtor creating a charge on its immovable properties and hypothecation of goods and assets, it failed to repay the amount, leading to the account being classified as a Non-Performing Asset (NPA) on 30.12.2013. The Financial Creditor issued a Demand Notice dated 12.05.2014 under

…

## Facts

Punjab National Bank (formerly Oriental Bank of Commerce) filed a Company Petition to initiate Corporate Insolvency Resolution Process (CIRP) against NCS Sugars Ltd. The basis for the petition was a default in payment of Rs.226,94,94,093/- as of March 31, 2018. In 2002, NCS Sugars had approached a consortium of banks, including Andhra Bank, Indian Overseas Bank, and Global Trust Bank Limited (merged with Punjab National Bank), and received disbursements totaling Rs.130,37,47,281/-. As part of the loan agreements, NCS Sugars created charges on its immovable properties and hypothecated its goods and assets. Due to consistent failure to repay, the account was classified as a Non-Performing Asset (NPA) on December 30, 2013. A Demand Notice was issued on May 12, 2014, under

…

## Issues and analysis

### Issue 1: Whether there is a financial debt as claimed by the applicant is due and payable by the …

**Ratio:** The ratio decidendi is based on the Supreme Court's ruling in Mobilox Innovations Private

…

**Reasoning:** The Adjudicating Authority considered the loan and security documents presented by the

…

**Interpretation:** The interpretation of the law is that the existence of a financial debt and its

…

**Application:** The ratio and reasoning were applied to the facts of the case, where the

…

## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Punjab National…
- **Respondents:** NCS Sugar…

## Timeline

- **2002-01-01 — Loan Disbur…**: Corporate Debtor approached a consortium of banks and was disbursed sums aggregating to…
- **2013-12-30 — Account Classified as…**: The account was classified as Non-Performing Asset (NPA) due to consistent failure to…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ncs-sugars-limited-df0fa364