Central Bank of India Vs Deepak Education Limited (NCLT Mumbai)
The National Company Law Tribunal (NCLT), Mumbai admitted an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the financial creditor for initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The financial creditor claimed a default of ₹44.68 crore, comprising principal, accrued interest, penal interest, and after adjusting recoveries. The date of default was stated to be 31.03.2015, following the corporate debtor’s failure to repay a term loan sanctioned in 2013.
The financial creditor submitted that after the account became a non-performing asset, the corporate debtor made certain repayments until 20.01.2016, following which no further payments were made. Legal notices demanding repayment were issued in 2017. The creditor also placed on record an authenticated report of default issued by the Information Utility (NeSL). Additionally, the corporate debtor had submitted a One Time Settlement (OTS) proposal dated 25.01.2023 offering to settle the dues, while its audited financial statements from financial years 2013-14 to 2021-22 continued to disclose the outstanding term loan.
The corporate debtor remained unrepresented in the proceedings. Although it sought to set aside the ex parte order by filing an interlocutory application, the application continued to remain under defects. Consequently, the Tribunal proceeded to decide the matter ex parte on the basis of the material available on record.
