NCLT Delhi Admits TDT Copper Limited To Insolvency On Bank Of India’s ₹153.98 Crore Petition
Pranav B Prem
The National Company Law Tribunal (NCLT), Court-V, New Delhi Bench, comprising Mahendra Khandelwal (Judicial Member) and Anu Jagmohan Singh (Technical Member), has admitted an insolvency petition filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against TDT Copper Limited, for default of ₹153.98 crore. The Tribunal, by order dated October 16, 2025, appointed Shailesh Chandra Ojha as the Interim Resolution Professional (IRP) and declared a moratorium on all proceedings against the corporate debtor.
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Background
The Bank of India, a member of the working capital lending consortium for TDT Copper Limited, had extended various credit facilities since June 2010, initially sanctioning a working capital limit of ₹40 crore. Over time, this limit was revised and enhanced to ₹81 crore, with an additional ₹10 crore ad hoc facility sanctioned in November 2013.
The loans were secured by personal guarantees of Avinash Ladha and Laxman Das Ladha, as well as corporate guarantees from Madura Spinning and Manufacturing Co. Ltd. and Sivog Marketing Pvt. Ltd. The company defaulted on January 25, 2019, and its account was declared a Non-Performing Asset (NPA) on April 30, 2019. Subsequently, Bank of India issued a SARFAESI notice on February 12, 2020, for recovery of dues amounting to ₹77.30 crore.
Meanwhile, under SARFAESI proceedings, the company’s industrial land at Bawal, Rewari (Haryana) was auctioned in January 2024, fetching ₹61.01 crore, which was distributed among the consortium lenders. Despite this recovery, the outstanding dues remained ₹153.98 crore (including interest) as of February 15, 2025. TDT Copper Limited had also submitted a One Time Settlement (OTS) proposal on January 23, 2024, acknowledging the outstanding dues. The lenders’ consortium, however, rejected the proposal in its meeting on January 25, 2024.
Tribunal’s Findings
The Tribunal noted that the financial statements of the corporate debtor for FY 2019–20 and 2020–21 recorded the loans availed, thereby constituting acknowledgment of debt under law. Further, the OTS proposal dated January 23, 2024 served as a fresh acknowledgment, thus extending the limitation period. Relying on the Supreme Court’s decision in Innoventive Industries Ltd. v. ICICI Bank, the bench reiterated that once default is established, the Adjudicating Authority has no discretion to reject a complete and valid Section 7 application.
The NCLT held that the petition satisfied all statutory requirements under Section 7(5)(a) of the IBC and was filed within limitation. Accordingly, the petition was admitted, and Corporate Insolvency Resolution Process (CIRP) against TDT Copper Limited was initiated.
Order
The Tribunal passed the following directions:
- CIRP initiated against TDT Copper Limited.
- Mr. Shailesh Chandra Ojha (Reg. No. IBBI/IPA-001/IP-P-02859/2023-2024/14382) appointed as Interim Resolution Professional (IRP).
- Declared a moratorium under Section 14 of the IBC, prohibiting initiation or continuation of suits, transfer of assets, foreclosure actions, or recovery proceedings against the company.
- Directed Bank of India to deposit ₹2,00,000 towards initial CIRP expenses.
- Ordered public announcement of initiation of insolvency proceedings within three days.
The Tribunal also clarified that the moratorium does not apply to personal guarantors, in line with Section 14(3)(b) of the IBC.
Finding sufficient evidence of default and acknowledgment of debt, the NCLT Delhi admitted TDT Copper Limited into CIRP under Section 7 of the IBC. The order underscores the principle that once a financial creditor establishes debt and default, the Tribunal has a mandatory duty to admit the petition.
Cause Title: Bank of India v TDT Copper Ltd
Case No: Company Petition IB (IBC) No. 200/ND/2025
Coram: Judicial Member Mahendra Khandelwal, Technical Member Anu Jagmohan Singh
