# In the matter of Visa Industries Limited Vs Punjab National Bank & Ors.

> HC judgment dated 2022-12-21. Citation: TCN-2022-HC-00004. The case originates from an application challenging actions related to the Insolvency and…

- **Court:** HC
- **Order date:** 21 Dec 2022
- **Citation:** TCN-2022-HC-00004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/visa-industries-limited-vs-punjab-national-bank-ors-6815f605

## Summary

### Background

The case originates from an application challenging actions related to the Insolvency and Bankruptcy Code (IBC). The petitioner, Visa Industries Limited, challenges the rejection of a proposal for resolution of loan exposure by Punjab National Bank (PNB). The case also involves challenging orders passed by the National Company Law Tribunal (NCLT), Cuttack, related to insolvency proceedings initiated against Visa Industries Limited.

## Facts

Visa Industries Limited, the petitioner, filed a writ petition challenging the unjust actions of Opposite Party No. 1 (likely Punjab National Bank). The challenge stems from the rejection of a proposal received by Opposite Party No. 1 from Assets Care & Reconstruction Enterprise Limited for resolving the loan exposure of Opposite Party No. 1 in Opposite Party No. 2. The petition also challenges orders dated 2022-11-28 passed by the National Company Law Tribunal (NCLT), Cuttack, in relation to IA (IB) No. 131/CB/2021 in CP (IB) No. 53/CTB/2020 and IA (IB) No. 105/CB/2022 in CP (IB) No. 53/CTB/2020. These applications relate to proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016, where an application filed by Opposite Party No. 1 against Opposite

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## Issues and analysis

### Issue 1: Whether the rejection of the loan resolution …

**Ratio:** The ratio would depend on the specific terms of the loan agreement, the applicable

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**Reasoning:** The court's reasoning would involve an examination of the bank's justification for

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**Interpretation:** The interpretation would focus on the legal standards applicable to banks'

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**Application:** The application would involve applying the legal standards and principles to

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## Parties

- **Judges:** Biswanath…
- **Respondents:** Visa Industries…; Punjab National…

## Timeline

- **2022-11-28 — NCLT Ord…**: Orders passed by Hon'ble National Company Law Tribunal, Cuttack, challenged in the…
- **2022-12-08 — Letter D…**: Date of the letter where a proposal received by Opposite Party No. 1 from Assets Care &…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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