# In the matter of Pawan Kumar Vs Central Bank of India & Ors.

> NCLAT judgment dated 2025-01-15. Citation: TCN-2025-NCLAT-00264. This case involves an appeal against the order dated 14.05.2024 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 15 Jan 2025
- **Citation:** TCN-2025-NCLAT-00264
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pawan-kumar-vs-central-bank-of-india-ors-c3e96462

## Summary

### Background

This case involves an appeal against the order dated 14.05.2024 passed by the Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, Court-I, admitting Section 7 Application filed by Punjab National Bank (Successor of Oriental Bank of Commerce), initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s Kaur Sain Spinners Ltd. The Central Bank of India had also filed a Section 7 application, which was later dismissed as infructuous. The Corporate Debtor had taken loans from a consortium of banks, including Oriental Bank of Commerce and Central Bank of India. The account was declared NPA by both banks in 2017. Recovery proceedings were initiated by Central Bank of India before the Debts Recovery Tribunal (DRT). The

…

## Facts

The Corporate Debtor, M/s Kaur Sain Spinners Ltd., was extended a loan by a consortium of banks, including Oriental Bank of Commerce and Central Bank of India, under an agreement dated 06.03.2017. The account of the Corporate Debtor was declared NPA by Central Bank of India on 30.09.2017 and by Oriental Bank of Commerce on 31.08.2017. Central Bank of India filed OA No.3000 of 2018 before the Debts Recovery Tribunal (DRT) for recovery of its outstanding dues, and Oriental Bank of Commerce filed OA No.3249 of 2019 against the CD. Central Bank of India filed a Section 7 application on 19.09.2018, and Oriental Bank of Commerce also filed a Section 7 application. A decree was passed in favor of Central Bank of India for Rs.49,44,65,248/- in the DRT proceedings. Recovery

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 7 application filed by Punjab …

**Ratio:** The Adjudicating Authority is empowered to admit a Section 7 application if it finds that

…

**Reasoning:** The Adjudicating Authority found that there was a debt and default and therefore admitted

…

**Interpretation:** The Adjudicating Authority has the power to admit a Section 7 application if it

…

**Application:** In this case, the Adjudicating Authority found that the Corporate Debtor had

…

## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Pawan K…
- **Respondents:** M/s Kaur Sain…; Central Bank of…

## Timeline

- **2017-03-06 — Loan Agre…**: Corporate Debtor was extended a loan by a consortium of banks, including Oriental Bank of…
- **2017-08-31 — NPA Declaration by…**: Oriental Bank of Commerce declared the…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/pawan-kumar-vs-central-bank-of-india-ors-c3e96462