The National Company Law Tribunal (NCLT) at Delhi recently admitted TDT Copper Limited to insolvency proceedings, acting on a plea filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC).The public sector lender had approached the Tribunal seeking recovery of dues amounting to Rs 153.98 crore.A coram comprising Judicial Member Mahendra Khandelwal and Technical...
The National Company Law Tribunal (NCLT) at Delhi recently admitted TDT Copper Limited to insolvency proceedings, acting on a plea filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC).
The public sector lender had approached the Tribunal seeking recovery of dues amounting to Rs 153.98 crore.
A coram comprising Judicial Member Mahendra Khandelwal and Technical Member Anu Jagmohan Singh in an order passed on October 16 appointed Shailesh Chandra Ojha as the Interim Resolution Professional (IRP) and declared a moratorium on all proceedings against the debt-ridden company.
The dispute arose from working capital loans first given in June 2010. Over time, the credit limit was increased to Rs 81 crore, with an extra Rs10 crore given as ad hoc credit. The company defaulted on January 25, 2019, and the account was marked as a Non-Performing Asset (NPA) on April 30, 2019.
While the Bank recovered around Rs 61 crore through a SARFAESI auction in January 2024, it claimed an outstanding amount of over Rs 153 crore, including interest. Notably, TDT Copper had proposed a One Time Settlement in January 2024, which was rejected by the lenders.
Bank of India counsels submitted that the company had acknowledged the debt in its financial statements for FY 2019-20 and 2020-21, and again through the OTS proposal submitted on January 23, 2024. They argued that this constituted a fresh acknowledgment of liability and extended the limitation period. They further argued that despite partial recovery, a significant sum remained unpaid, justifying the initiation of the Corporate Insolvency Resolution Process (CIRP).
Subsequently, the tribunal found the petition to be within limitation. Relying on the precedent established in Innoventive Industries v. ICICI Bank, the tribunal observed that once a default is established, the Adjudicating Authority has limited discretion to reject a valid Section 7 application.
The Tribunal accordingly admitted the petition. It also clarified that the moratorium does not extend to guarantors, and directed the Financial Creditor to deposit Rs 2 lakh for initial CIRP expenses.
Case Title: Bank of India v TDT Copper Ltd
Case Number: COMPANY PETITION IB (IBC) NO. 200/ND/2025
For Applicants: Advocates Karan Gandhi, Sikhar Tiwari, Vidhika Kapoor, Riya Jain.
Click here to read/download order