# In the matter of Om Shree Ganesh Containers Private Limited

> NCLT judgment dated 2023-12-05. Citation: TCN-2023-NCLT-00449. The case involves a petition filed by Ashok Investors Trust Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 5 Dec 2023
- **Citation:** TCN-2023-NCLT-00449
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/om-shree-ganesh-containers-private-limited-42eb6777

## Summary

### Background

The case involves a petition filed by Ashok Investors Trust Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), to initiate the Corporate Insolvency Resolution Process (CIRP) against OM Shree Ganesh Containers Private Limited, the Corporate Debtor. The Corporate Debtor allegedly defaulted on loan repayments, specifically interest payments, as per the terms of their agreement. The Financial Creditor claims a total default amount of Rs. 1,02,92,603, including principal and interest.

## Facts

Ashok Investors Trust Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against OM Shree Ganesh Containers Private Limited (Corporate Debtor). The Corporate Debtor was incorporated on 07.05.2007. The Date of Default arose on 1st May 2023, 1st June 2023 and 1st July 2023 when the Corporate Debtor failed to repay as per the terms of the said agreement. The Corporate Debtor was supposed to pay interest at 12% p.a. on a monthly basis. The Corporate Debtor defaulted in making the payment of the interest for the 1st Month i.e. 01.05.2023 and 2nd Month i.e. 01.06.2023 and 3rd Month i.e. 01.07.2023. The Financial Creditor issued a Demand notice to the Corporate

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court found that the Corporate Debtor had defaulted on several terms as stipulated in

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

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**Application:** The court applied this principle to the facts of the case, noting that the

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## Parties

- **Judges:** V.G. B…; SH. PRABHAT…
- **Appellants:** Ashok Investors…
- **Respondents:** OM Shree Ganesh…
- **Advocates:** Yahya Bata…; Nimisha R…

## Timeline

- **2007-05-07 — Incorporation of…**: OM Shree Ganesh Containers…
- **2023-04-10 — Agreement Ex…**: Agreement executed between…

## 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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