# In the matter of Oshiya Industries Private Limited IA-2320-2022 in C.P. (IB)-54(MB)2021

> NCLT judgment dated 2022-07-21. Citation: TCN-2022-NCLT-01620. The case involves a petition filed by Jinvik Exports Private Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 21 Jul 2022
- **Citation:** TCN-2022-NCLT-01620
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/oshiya-industries-private-limited-ia-2320-2022-in-cp-ib-54mb2021-05b174cb

## Summary

### Background

The case involves a petition filed by Jinvik Exports Private Limited, the Financial Creditor, to initiate Corporate Insolvency Resolution Process (CIRP) against Oshiya Industries Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had admitted to owing a debt of Rs. 16.50 lacs in their reply, leading the NCLT to admit the petition. Subsequently, an application was filed to withdraw the name of the initially appointed Interim Resolution Professional (IRP), Mr. Prabhakar Kumar.

## Facts

Jinvik Exports Private Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Oshiya Industries Private Limited, the Corporate Debtor. The petition was based on an unresolved financial debt of Rs. 22,42,372, including a principal amount of Rs. 16,50,000 and interest of Rs. 5,92,372. The Corporate Debtor, in its reply, admitted to owing Rs. 16.50 lacs and committed to making the payment within 18 to 20 months. The NCLT admitted the petition and initiated CIRP. The Financial Creditor suggested the name of Mr. Prabhakar Kumar as the IRP, who was subsequently appointed by the NCLT. Later, an application was filed to withdraw the name of Mr. Prabhakar Kumar as IRP, and Mr. Mukesh Kumar Jain was

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## Issues and analysis

### Issue 1: Whether the petition for CIRP should be admitted …

**Ratio:** When a corporate debtor admits to owing a debt and defaults on its payment, the

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**Reasoning:** The NCLT noted that the Corporate Debtor had admitted to owing Rs. 16.50 lacs in its

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial

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**Application:** In this case, the Corporate Debtor's admission of debt in its reply provided

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## Parties

- **Judges:** ANURADHA SANJAY…; H.V. Subb…
- **Appellants:** Jinvik Exports…
- **Respondents:** Oshiya Industries…
- **Advocates:** Amir Ars…

## Timeline

- **2022-01-17 — Withdrawal let…**: Mr. Prabhakar Kumar decided to withdraw his…
- **2022-01-27 — Additional submission…**: The Applicant filed an additional submission wherein a proposal was made to appoint Mr.…

## 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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