# In the matter of OPTO Circuits (India) Limited C.P. (IB)No. 199-BB-2018

> NCLT judgment dated 2022-11-16. Citation: TCN-2022-NCLT-00431. ICICI Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against M/s. OPTO…

- **Court:** NCLT
- **Order date:** 16 Nov 2022
- **Citation:** TCN-2022-NCLT-00431
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/opto-circuits-india-limited-cp-ibno-199-bb-2018-7322265d

## Summary

### Background

ICICI Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against M/s. OPTO Circuits (India) Limited due to a default of INR 1,078,559,340.96. The default stemmed from non-fund based working capital facilities availed by Opto Circuits, including Stand by Letter of Credit (SBLC) facilities. ICICI Bank had provided these facilities, including guarantees for obligations of Jolt Acquisition Company (JAC) or Cardiac Science Corporation (CSC). The validity of these facilities was extended and amended over time. The Respondent failed to repay the amounts due, leading to the invocation of the US Bank SBLC and subsequent remittance by ICICI Bank. Despite repeated reminders, Opto Circuits failed to make payments, leading to the issuance of a notice of default.

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## Facts

ICICI Bank Limited, incorporated on January 5, 1994, filed a petition against OPTO Circuits (India) Limited, incorporated on June 8, 1992, under Section 7 of the Insolvency and Bankruptcy Code, 2016, due to a default of INR 1,078,559,340.96. OPTO Circuits had availed non-fund based working capital facilities, including Stand by Letter of Credit (SBLC) facilities, from ICICI Bank. These facilities were intended to provide financial guarantees for obligations of Jolt Acquisition Company (JAC) or Cardiac Science Corporation (CSC). A Facility Agreement was entered on May 18, 2011. The validity of the SBLC was extended and amended over time. OPTO Circuits failed to repay the amounts due, leading to the invocation of the US Bank SBLC. ICICI Bank remitted INR 651,413,028 to

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. OPTO Circuits (India) Limited, committed a default in payment of …

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

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**Reasoning:** The Adjudicating Authority considered the evidence presented by the Financial Creditor,

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** In this case, the Financial Creditor demonstrated that a debt existed and that

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## Parties

- **Judges:** KISHORE VEMULAPALL…; Manoj Kumar…
- **Appellants:** ICICI Bank…
- **Respondents:** OPTO Circuits…; M/s. OPTO…
- **Advocates:** Shri. Francis…; Shri.Samarth…

## Timeline

- **1994-01-05 — Incorporation of ICICI…**: ICICI Bank Limited was incorporated…
- **1992-06-08 — Incorporation of OPTO…**: OPTO Circuits (India)…

## 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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