# In the matter of Ojas Tradelease and Mall Management Private Limited

> NCLT judgment dated 2024-09-24. Citation: TCN-2024-NCLT-00560. Central Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 24 Sept 2024
- **Citation:** TCN-2024-NCLT-00560
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ojas-tradelease-and-mall-management-private-limited-fa023746

## Summary

### Background

Central Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Ojas Tradelease and Mall Management Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is the Corporate Guarantor to Iskrupa Mall Management Company Private Limited, the Principal Borrower. The Financial Creditor had granted a Term Loan of Rs.150 crores to the Principal Borrower, guaranteed by the Corporate Debtor. The Principal Borrower defaulted on 30.09.2020 and requested for One-Time Restructuring (OTR). A Demand Notice was issued on 06.06.2022. The financial debt claimed to be in default is Rs.72,32,17,258.14/- as on 29.05.2022.

## Facts

Central Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ojas Tradelease and Mall Management Private Limited, the Corporate Debtor. The Corporate Debtor acted as a Corporate Guarantor for Iskrupa Mall Management Company Private Limited, the Principal Borrower, for a term loan of Rs. 150 crores granted by the Financial Creditor. The loan was sanctioned on 19.09.2015, and a Term Loan Agreement was executed on 24.09.2015. The Corporate Debtor executed a Deed of Guarantee on 24.09.2015. The Principal Borrower defaulted on 30.09.2020 and requested a One-Time Restructuring (OTR). The OTR was executed on 19.06.2021. The Corporate Guarantor

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** A financial creditor can initiate CIRP simultaneously against the primary borrower and

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**Reasoning:** The NCLT held that the action for initiating CIRP can be taken by a financial creditor

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**Interpretation:** This principle clarifies that a financial creditor is not restricted from

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**Application:** The NCLT applied this principle to allow the application against the Corporate

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Central Bank of…
- **Respondents:** Ojas Tradelease…

## Timeline

- **2015-09-19 — Sanction…**: Financial Creditor granted a Term Loan of…
- **2015-09-24 — Term Loan Ag…**: Financial Creditor entered into a Term Loan…

## 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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