State Bank of India Vs Raninga Paper Mills Private Limited (NCLT Ahmedabad)
NCLT Ahmedabad held that application for initiation of Corporate Insolvency Resolution Process [CIRP] filed by Financial Creditor [SBI] u/s. 7 of IBC against Corporate Debtor [Raninga Paper Mills Private Limited] is admitted as existence of financial debt and default demonstrated.
Facts- This Petition is filed on 11.07.2025 by the Applicant- State Bank of India (Financial Creditor) against the Respondent- Raninga Paper Mills Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC, 2016”) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as “IB (AAA) Rules, 2016”) for initiation of Corporate Insolvency Resolution Process (CIRP), to appoint Interim Resolution Professional (“IRP”) and declare the moratorium for having defaulted in payment of the outstanding Financial Debt of Rs. 28,12,30,051.61ps. including interest. The date of default as stated to be 30.06.2024.
Conclusion- Held that the Financial Creditor is entitled to the relief as sought. The Corporate Debtor’s default, acknowledgment of the financial obligations while seeking resolution through the CIRP mechanism under the Insolvency and Bankruptcy Code, justifies the admission of the petition and the initiation of CIRP under the Code. Hence, the Application filed under section 7(2) of the Insolvency and Bankruptcy Code for initiation of corporate insolvency resolution process against (CIRP) the Respondent/Corporate Debtor deserves to be admitted. Thus, The Respondent/Corporate Debtor – Raninga Paper Mills Private Limited is admitted in the Corporate Insolvency Resolution Process (CIRP) under section 7 of the IBC, 2016.
