# In the matter of Ajay Agarwal Vs. Central Bank India & State Bank of India CA (AT) (Insol.) No. 180-2017

> NCLAT judgment dated 2017-12-13. Citation: TCN-2017-NCLAT-00008. This case involves an appeal against the order dated 4th September, 2017, passed by the…

- **Court:** NCLAT
- **Order date:** 13 Dec 2017
- **Citation:** TCN-2017-NCLAT-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ajay-agarwal-vs-central-bank-india-state-bank-of-india-ca-35dcd391

## Summary

### Background

This case involves an appeal against the order dated 4th September, 2017, passed by the Adjudicating Authority (National Company Law Tribunal), Chennai Bench, in Company Petition No. 551(IB)/CB/2017. The appeal was preferred by Mr. Ajay Agarwal, Director/shareholder of M/s. Ashok Magnetics Limited (‘Corporate Debtor’). The application was preferred by the Respondents, Central Bank of India and State Bank of India, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the application, passed an order of moratorium, and appointed an Interim Resolution Professional.

## Facts

Mr. Ajay Agarwal, Director/shareholder of M/s. Ashok Magnetics Limited (‘Corporate Debtor’), filed an appeal against the order dated 4th September, 2017, passed by the Adjudicating Authority (National Company Law Tribunal), Chennai Bench, in Company Petition No. 551(IB)/CB/2017. The Central Bank of India and State Bank of India, the respondents, initiated proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016, against the Corporate Debtor. The Adjudicating Authority admitted the application, passed an order of moratorium, and appointed an Interim Resolution Professional. The appellant argued that there was a 'mismatch of figures and dates of default' in the application. The State Bank of India accepted that the outstanding amount was

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## Issues and analysis

### Issue 1: Whether the mere mismatch of figures and dates of default in an application under Section 7 of the …

**Ratio:** The mere mismatch of figures will ipso facto not invalidate the order initiating

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**Reasoning:** The Respondents have explained the difference between the claim amount as made on 19th

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**Interpretation:** The court interpreted that minor discrepancies in figures should not be a

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**Application:** In this case, the appellant raised a dispute and pleaded a mismatch of debt

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Ajay Ag…
- **Respondents:** M/s. Ashok…; Central Bank of…

## Timeline

- **2017-09-04 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Chennai Bench, passed an…
- **2017-12-13 — Order by Appellate…**: The National Company Law Appellate Tribunal dismissed the appeal filed by Mr. Ajay…

## 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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