The New Delhi bench of the National Company Law Tribunal has admitted the insolvency petition filed by ICICI Bank under Section 7 of the IBC against printing ink manufacturer Tirupati Inks. The principal bench comprising president MM Kumar and member Deepa Krishnan has appointed Mukesh Mohan as the interim resolution professional (IRP) for Tirupati Inks. The company owes around Rs 30 crore to ICICI Bank. The IRP, along with a committee of creditors (CoC), will come up with a resolution plan. If the committee is unable to find a solution within 180 days · this can be extended to 270 days · the company will be liquidated.
With the appointment of the IRP, powers of the board or the partners of the corporate debtor shall stand suspended. Officers and managers of the corporate debtor shall report to the IRP and provide access to all documents and records of the corporate debtor as may be required by the professional. As on December 2015, promoters had 25.61% stake in the company. It had around Rs 200 crore of debt on its books at the end of 2016-17 fiscal. Tirupati Inks had opposed the admission of the insolvency application by arguing that ICICI Bank is only a part of the consortium of banks and the credit facilities as availed of by it were a part of the consortium finance.
However, the bench observed that “the objection would not require any serious consideration because explanation to section 7 (1) clarifies that for the purpose of Section 7, a default includes a default in respect of financial debt, owed not only to the applicant-financial creditor, but to another financial creditor of the corporate debt”. Tirupati Inks has two manufacturing facilities in Greater Noida and Jammu. Revenues of the company fell from Rs 264.68 crore in 2015 to 9,559 crore in 2016 and further to Rs 3.63 crore in 2017. It had reported Rs 29.49-crore loss in 2015, Rs 70.98-crore loss in 2016 and Rs 148.20-crore loss in 2017. In its latest annual report, Tirupati Inks said it could not arrange funds towards working capital needs. The company could not repay its dues to the consortium banks as losses mounted.