# In the matter of Heena Nandlal Thakkar vs. Karnataka Bank Ltd. & Anr. Company Appeal (AT) (Ins) No. 553 of 2023

> NCLAT judgment dated 2023-05-02. Citation: TCN-2023-NCLAT-00561. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, against an…

- **Court:** NCLAT
- **Order date:** 2 May 2023
- **Citation:** TCN-2023-NCLAT-00561
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/heena-nandlal-thakkar-vs-karnataka-bank-ltd-anr-company-appeal-e8df19b8

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, against an order dated 24.03.2023 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, Court-II, which admitted an application filed under Section 7 of the Code by Karnataka Bank Ltd, the financial creditor. The financial creditor claimed a default of Rs. 15,81,63,867/-. The NCLT initiated the Corporate Insolvency Resolution Process (CIRP). The appellant, the Suspended Director of the corporate debtor, appealed the NCLT's decision.

## Facts

Karnataka Bank Ltd., the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, before the NCLT, claiming a default of Rs. 15,81,63,867/-. The NCLT admitted the application and initiated CIRP. The corporate debtor's account was declared a Non-Performing Asset (NPA) on 01.05.2019 due to irregular account activity. The total disbursed amount to the corporate debtor was Rs. 17,45,00,000/-. The appellant, the Suspended Director of the corporate debtor, appealed the NCLT's order. The appellant claimed that approximately 28% of the total debt had been paid. The appellant also stated that Rs. 4,42,00,000/- had already been paid in proceedings before the DRT, but this fact was not reflected in the NCLT order. The loan was

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## Issues and analysis

### Issue 1: Whether the NCLT's order admitting the application under Section 7 of the Insolvency and Bankruptcy …

**Ratio:** The NCLT has the authority to admit an application under Section 7 of the Insolvency and

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**Reasoning:** The NCLAT found that the debt was not disputed before the NCLT, and the application was

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial

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**Application:** In this case, the financial creditor, Karnataka Bank Ltd., filed an application

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## Parties

- **Judges:** Rakesh…; Alok Sriv…
- **Appellants:** Heena Nandlal…
- **Respondents:** Karnataka Bank…

## Timeline

- **2015-08-01 — Loan Sanc…**: Loan was sanctioned to the appellant…
- **2018-03-31 — Facility Co…**: Loan facility continued…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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