# In the matter of Paramount Minerals and Chemicals Limited

> NCLT judgment dated 2025-03-25. Citation: TCN-2025-NCLT-01036. Central Bank of India filed a Company Petition under Section 7 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 25 Mar 2025
- **Citation:** TCN-2025-NCLT-01036
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/paramount-minerals-and-chemicals-limited-0b4643ee

## Summary

### Background

Central Bank of India filed a Company Petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Paramount Minerals and Chemicals Limited, the Corporate Debtor.

## Facts

The petition was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016.

The Financial Creditor is Central Bank of India.

The Corporate Debtor is Paramount Minerals and Chemicals Limited.

The total default amount is INR 16,94,03,619.36/-.

The Date of Default is 17.06.2023.

The Corporate Debtor acknowledged the liability towards the Financial Creditor in its balance-sheet as on 31.03.2021 and 31.03.2022.

The Corporate Debtor submitted a proposal for One Time Settlement (OTS) dated 13.09.2024 for INR 15,00,00,000/-, which was rejected by the Financial Creditor.

The Corporate Debtor submitted a revised OTS letter dated 29.11.2024 for Rs. 16,00,00,000/-.

…

## Issues and analysis

### Issue 1: Whether the petition is maintainable under Section …

**Ratio:** The petition is maintainable as the debt is acknowledged by the Corporate Debtor and

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**Reasoning:** The Corporate Debtor owes the Financial Debt in

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**Interpretation:** The pre-requisites for an application under Section 7 of the Code are the

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**Application:** The existence of debt and default is reasonably established by the Applicant as

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** Central Bank of…
- **Respondents:** Paramount…
- **Other parties:** Gajesh Labhchand…
- **Advocates:** Prajakta M…; Geeta Tor…; +1 more

## Timeline

- **2023-06-17 — Date of D…**: The Date of Default, as specified in…
- **2024-05-08 — Petition…**: The captioned petition…

## 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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