# In the matter of Rolta India Limited CP (IB) 530-MB-C-I-2020

> NCLT judgment dated 2023-01-19. Citation: TCN-2023-NCLT-04994. Union Bank of India filed a Company Petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 19 Jan 2023
- **Citation:** TCN-2023-NCLT-04994
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rolta-india-limited-cp-ib-530-mb-c-i-2020-3edb7777

## Summary

### Background

Union Bank of India filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Rolta India Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The petition was filed due to the corporate debtor's default in repayment of monies to the tune of Rs. 1413,47,38,878.00. The Financial Creditor claimed that the Corporate Debtor was classified as NPA on 31.01.2018. The Financial Creditor relied on various documents, including sanction letters, acknowledgement letters, and security documents, to support the existence of debt and default. The Corporate Debtor opposed the admission of the Company Petition on grounds such as the petition being defective and incomplete, filed without authorization, power of attorney

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## Facts

In 2009, Rolta Industries Ltd. availed working capital facilities aggregating to Rs. 400 Crores from a Union Bank Consortium. The Corporate Debtor executed a Working Capital Consortium Agreement, a Joint Deed of Hypothecation, and an Inter se Agreement dated 26th December 2009. The facilities were reviewed, enhanced, modified, and renewed over time. The Corporate Debtor executed a Deed of Hypothecation cum Charge on 27th October 2016, a Memorandum of Entry on 3rd November 2016, and a Declaration of Mortgage by deposit of Title Deeds. The Financial Creditor sanctioned Rs. 240 crores (WCTL-I) on 26th September 2016 and Rs. 185.00 crores (WCTL-II) on 19th June 2017. The Corporate Debtor confirmed the liabilities in a Revival Letter dated 25th May 2018. Joint Lenders

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## Issues and analysis

### Issue 1: Whether the petition is incomplete and defective due to the failure to state the date of default in …

**Ratio:** The NCLT Rules, 2016 define 'pleadings' in a broad manner, including supplementary

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**Reasoning:** The Adjudicating Authority relied on the judgment of Hon'ble NCLAT in Bishal Jaiswal Vs.

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**Interpretation:** The date of default is the date of declaration of account as NPA. Supplementary

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**Application:** The Corporate Debtor's argument that the petition is incomplete and defective

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## Parties

- **Judges:** Shyam Babu…; P.N. Des…
- **Appellants:** Union Bank of…
- **Respondents:** Rolta India…

## Timeline

- **2009-01-01 — Working Capital…**: Rolta Industries Ltd availed Working Capital Facilities aggregating to Rs.400 Crores from…
- **2009-12-26 — Agreements E…**: The Corporate Debtor executed a Working Capital Consortium Agreement, a Joint Deed of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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