Bank of India Vs TDT Copper Limited (NCLT Delhi)
The National Company Law Tribunal (NCLT), Delhi Bench, heard a company application filed by Bank of India (“Financial Creditor”) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against TDT Copper Limited (“Corporate Debtor”).
The application, filed on 19 March 2025, was based on a default of ₹153.98 crore as on 25 January 2019. The Corporate Debtor, incorporated in 1993 with a paid-up capital of ₹81.85 crore and registered in New Delhi, fell within the jurisdiction of the Delhi Bench.
Background of the Financial Transaction
The Financial Creditor sanctioned a working capital limit of ₹40 crore on 7 June 2010, later enhanced to ₹62 crore on 31 October 2011 and ₹81 crore on 8 May 2013. The lenders formed a consortium through a Working Capital Consortium Agreement dated 25 January 2011, with Dena Bank (now Bank of Baroda) as the lead bank.
The Corporate Debtor later sought an ad-hoc limit for Letters of Undertaking (LoU)/Buyer’s Credit, for which ₹10 crore was sanctioned on 20 November 2013. Further credit facility reviews were approved on 8 February 2018. The credit facilities were secured by personal guarantees of Avinash Ladha and Laxman Das Ladha, and corporate guarantees from Madura Spinning and Manufacturing Limited and Sivog Marketing Private Limited.
