# In the matter of PATEL WOOD PRODUCTS LIMITED

> NCLT judgment dated 2025-04-22. Citation: TCN-2025-NCLT-00198. The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 22 Apr 2025
- **Citation:** TCN-2025-NCLT-00198
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/patel-wood-products-limited-b778ae74

## Summary

### Background

The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Alchemist Asset Reconstruction Company Limited (Financial Creditor) against Patel Wood Products Limited (Corporate Debtor). The Financial Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to a default in payment of INR 2,94,00,26,706, which includes interest at 21.75% p.a. compounded monthly, as of 30.04.2013 (date of NPA). The Corporate Debtor had availed credit facilities from ICICI Bank (Original Lender), which later assigned the account to Phoenix ARC Pvt. Ltd., and subsequently to Alchemist Asset Reconstruction Company Limited. The Corporate Debtor argued that the petition was barred by

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## Facts

The Alchemist Asset Reconstruction Company Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Patel Wood Products Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). Patel Wood Products Limited had availed credit facilities of Rs 14.978 Crores from ICICI Bank (Original Lender). The Original Lender declared the account of the Corporate Debtor as NPA on 30.04.2013. The Original Lender assigned the account to Phoenix ARC Pvt. Ltd. on 25.06.2014. The Hon'ble DRT, Delhi, issued a Recovery Certificate to Phoenix ARC Private Limited on 31.05.2019, directing the Corporate Debtor to pay Rs 35.83 Crores plus interest. Phoenix ARC Private Limited transferred the rights and obligations to Alchemist Asset

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The court determined that the corporate debtor had defaulted on its debt obligations to

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

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**Application:** The court found that the financial creditor had provided sufficient evidence of

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## Parties

- **Judges:** Sanjeev R…; MAHENDRA KHANDELWA…
- **Appellants:** Alchemist Asset…
- **Respondents:** Patel Wood…
- **Advocates:** Vishwajeet…; Aishwarya…

## Timeline

- **1997-05-27 — Corporate Debtor…**: Patel Wood Products…
- **2002-09-19 — Financial Creditor…**: Alchemist Asset Reconstruction…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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