# In the matter of Sanjeev Azad & anr. Vs. Punjab National Bank & anr. CA(AT)(Insolvency) 65-2019

> NCLAT judgment dated 2019-01-23. Citation: TCN-2019-NCLAT-00853. This is an appeal filed by the Directors and Shareholders of Ria Constructions Limited…

- **Court:** NCLAT
- **Order date:** 23 Jan 2019
- **Citation:** TCN-2019-NCLAT-00853
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sanjeev-azad-anr-vs-punjab-national-bank-anr-ca-10c551a2

## Summary

### Background

This is an appeal filed by the Directors and Shareholders of Ria Constructions Limited (Corporate Debtor) against the order dated 11th December 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, Chandigarh. The Adjudicating Authority admitted the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed by Punjab National Bank against the Corporate Debtor, passed an order of Moratorium, and appointed an Interim Resolution Professional.

## Facts

The Directors and Shareholders of Ria Constructions Limited filed an appeal against the order of the Adjudicating Authority (NCLT), Chandigarh, which had admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Punjab National Bank. The Adjudicating Authority had also declared a moratorium and appointed an Interim Resolution Professional. The Appellants argued that Form-1 was incomplete and that Punjab National Bank had issued a notice under the SARFAESI Act, 2002, with discrepancies in the amount of sale of mortgaged properties. The Adjudicating Authority was satisfied that a default had occurred and that Form-1 was complete.

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, was validly …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) aims to ensure that when a default occurs, the

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**Reasoning:** The court relied on the Supreme Court's observation in 'Innoventive Industries Limited v.

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**Interpretation:** The interpretation of 'debt' under Section 3(11) of the IBC includes even

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**Application:** In this case, the court found that the Appellants did not argue that the debt

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Sanjeev…
- **Respondents:** Ria Constructions…; Punjab National…

## Timeline

- **2016-07-16 — Notice issued by Punjab…**: Punjab National Bank issued a notice under…
- **2018-12-11 — Order by Adjudicating…**: The Adjudicating Authority (NCLT), Chandigarh, admitted the application under Section 7…

## 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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