# In the matter of Saarp Non Woven India Pvt. Ltd. CP(IB)-340(CHE)-2021

> NCLT judgment dated 2023-06-28. Citation: TCN-2023-NCLT-02748. OXYZO Financial Services Private Limited filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 28 Jun 2023
- **Citation:** TCN-2023-NCLT-02748
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/saarp-non-woven-india-pvt-ltd-cpib-340che-2021-9fae4018

## Summary

### Background

OXYZO Financial Services Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against SAARP Non Woven India Pvt. Ltd., the Corporate Debtor. The Financial Creditor claimed a debt of Rs.3,16,58,891/- due as of 05.04.2021. The Corporate Debtor contended that the amount claimed was exaggerated and that they had already paid Rs.1,41,08,130/- towards the outstanding on 21.12.2021. The Corporate Debtor also disputed the declaration of their account as NPA, citing RBI circulars during the COVID period. The Tribunal directed the Respondent to file proof of payment, and the Financial Creditor acknowledged receiving payments. The Financial Creditor issued a demand

…

## Facts

OXYZO Financial Services Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against SAARP Non Woven India Pvt. Ltd. (Corporate Debtor). The Financial Creditor claimed a debt of Rs.3,16,58,891/- due as of 05.04.2021. The Corporate Debtor disputed the amount, stating they paid Rs.1,41,08,130/- on 21.12.2021 and challenged the NPA declaration due to RBI circulars during COVID. The Financial Creditor issued a demand notice on 14.06.2021 under Section 13(2) of the SARFAESI Act, 2002. The Corporate Debtor availed purchase finance and business loans. Ledger statements showed outstanding amounts as of 27.02.2023. The Corporate Debtor made irregular

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor satisfies the requirements of debt and …

**Ratio:** The ratio decidendi is based on the principle that if a financial debt exists and a

…

**Reasoning:** The Tribunal reasoned that the ledger statements provided by the Financial Creditor

…

**Interpretation:** The interpretation of Section 7 of the IBC, as supported by the Supreme Court's

…

**Application:** In this case, the Tribunal applied the ratio by examining the ledger statements

…

## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** OXYZO FINANCIAL…
- **Respondents:** SAARP NON WOVEN…

## Timeline

- **2019-05-29 — Sanction Lett…**: Date of one of the sanction…
- **2019-09-21 — Sanction Lett…**: Date of another sanction…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/saarp-non-woven-india-pvt-ltd-cpib-340che-2021-9fae4018