# In the matter of Rajesh Kumar Modi vs. Punjab National Bank (International) Limited & Ors. Company Appeal (AT) (Insolvency) No. 53 of 2023

> NCLAT judgment dated 2023-05-26. Citation: TCN-2023-NCLAT-00486. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLAT
- **Order date:** 26 May 2023
- **Citation:** TCN-2023-NCLAT-00486
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajesh-kumar-modi-vs-punjab-national-bank-383943b3

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, challenging the order dated 05.01.2023 passed by the Adjudicating Authority (NCLT, Mumbai Bench) in CP (IB) No. 271 of 2022. The application under Section 7 was filed by Punjab National Bank (International) Limited, the financial creditor, which was allowed, initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, La Trendz Fabrica Private Limited.

## Facts

Two credit facilities were granted to La Trendz Fabrica Private Limited by Punjab National Bank (International) Limited for two term loans: US $3.47 million and US $1.20 million, vide letters dated 25.10.2011 and 13.08.2014. Loan Facility Agreements were executed on 19.11.2011 and 27.09.2014. An Amended Facility Agreement was executed on 08.02.2017. A recall notice dated 04.05.2021 was sent to the corporate debtor demanding repayment. The corporate debtor could not repay due to the Covid-19 pandemic and exchange rate increases. Punjab National Bank filed a Section 7 application, which was admitted on 02.02.2022. The corporate debtor's loan accounts were declared NPA in 2016, and a loan restructuring plan was approved on 26.12.2016, extending the repayment period to

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority (NCLT, Mumbai Bench) had the territorial jurisdiction to …

**Ratio:** Section 60(1) of the IBC provides that the NCLT has territorial jurisdiction over the

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**Reasoning:** The court reasoned that the corporate office of La Trendz Fabrica Private Limited is

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**Interpretation:** Section 60(1) of the IBC clarifies that the NCLT's jurisdiction is determined

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**Application:** Since the registered office of La Trendz Fabrica Private Limited is in Mumbai,

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## Parties

- **Judges:** Rakesh…; Alok Sriv…
- **Appellants:** Rajesh Kuma…
- **Respondents:** La Trendz Fabrica…; Punjab National…

## Timeline

- **2011-10-25 — Loan Facility…**: Punjab National Bank (International) Limited granted a loan of US $3.47 million to La…
- **2011-11-19 — Loan Facility Agreement…**: Loan Facility Agreement for Term Loan-I was executed between Punjab National Bank…

## 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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