# In the matter of Hemanshu Jamnadas Domadia
Shareholder & Director of M/s Silver Proteins Pvt Ltd Vs. Central Bank of India & Anr. Company Appeal (AT) (Insolvency) No. 623 of 2020

> NCLAT judgment dated 2021-11-10. Citation: TCN-2021-NCLAT-00055. This case involves an appeal against the admission of a Section 7 application under the…

- **Court:** NCLAT
- **Order date:** 10 Nov 2021
- **Citation:** TCN-2021-NCLAT-00055
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/hemanshu-jamnadas-domadia-shareholder-director-of-ms-silver-proteins-pvt-ltd-vs-0dd4766c

## Summary

### Background

This case involves an appeal against the admission of a Section 7 application under the Insolvency and Bankruptcy Code (IBC), 2016, by the Adjudicating Authority/National Company Law Tribunal (NCLT), Ahmedabad Bench. The Corporate Debtor, M/s Silver Proteins Pvt Ltd, had availed credit facilities from the Respondent Bank, Central Bank of India, and defaulted on repayment. The bank classified the account as a Non-Performing Asset (NPA) and filed a petition under Section 7 of the IBC. The Corporate Debtor resisted the application, primarily on the grounds of limitation and lack of proper authorization.

## Facts

M/s Silver Proteins Pvt Ltd (Corporate Debtor) availed credit facilities worth Rs. 19,12,50,000/- from Central Bank of India (Respondent Bank). The credit facilities were last renewed on 01 March 2015. The Corporate Debtor faced a liquidity crunch and defaulted on the loan repayment. The Respondent Bank classified the account as a Non-Performing Asset (NPA) on 01 July 2015. The Respondent Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Debtor resisted the application on the grounds of limitation and lack of proper authorization. The date of default was mentioned as 01 July 2015 in the Section 7 petition, and the application was filed on 22 October 2018. A payment of Rs.5,99,760/- was credited to the Corporate

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## Issues and analysis

### Issue 1: Whether the Application/petition is filed by …

**Ratio:** A general authorization given to an officer of the financial creditor by means of a power

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**Reasoning:** The NCLAT relied on its judgment in Palogix Infrastructure (supra), holding that if an

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**Interpretation:** The court interpreted that a general authorization, granted through a power of

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**Application:** In this case, Mr. Praveen Kumar Gupta was given general authorization by the

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## Parties

- **Judges:** Jarat Kuma…; V. P. S…
- **Appellants:** HemanshuJamnadasDo…
- **Respondents:** M/s Silver…; Central Bank of…

## Timeline

- **2015-03-01 — Credit Facilities…**: Credit facilities availed by M/s Silver…
- **2015-07-01 — Account Classified as…**: Central Bank of India classified the account of M/s Silver Proteins Pvt Ltd as a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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