# In the matter of Accent Packaging Pvt. Ltd. CP (IB) No. 459-7-NCLT-AHM-2019

> NCLT judgment dated 2022-01-03. Citation: TCN-2022-NCLT-04565. The Small Industries Development Bank of India (SIDBI) filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 3 Jan 2022
- **Citation:** TCN-2022-NCLT-04565
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/accent-packaging-pvt-ltd-cp-ib-no-459-7-nclt-ahm-2019-9805f3bb

## Summary

### Background

The Small Industries Development Bank of India (SIDBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Accent Packaging Pvt. Ltd., the Corporate Debtor, due to a default in paying a financial debt of Rs.6.93 Crores. The date of default was 07.10.2018.

## Facts

The Small Industries Development Bank of India (SIDBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Accent Packaging Pvt. Ltd. SIDBI claimed that Accent Packaging defaulted on a financial debt of Rs.6.93 Crores, with the date of default being 07.10.2018. SIDBI provided a term-loan agreement and a statement of loan account as evidence of the debt and default. A notice dated 10.10.2018, recalling loan facilities, was also presented. Accent Packaging appeared and contested the claim on a technical ground but did not dispute the existence of the debt or the default. One of the authorized signatories of the Corporate Debtor, Mr. Kunal Dilip Patel, produced an

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## Issues and analysis

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

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Adjudicating Authority considered the evidence presented by the Financial Creditor,

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their debts

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**Application:** In this case, the Financial Creditor provided sufficient evidence to establish

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## Parties

- **Judges:** Madan B.…; Ajai Das Me…
- **Appellants:** Small Industries…
- **Respondents:** M/s. Accent…

## Timeline

- **2018-10-07 — Date of D…**: The Corporate Debtor defaulted in paying…
- **2018-10-10 — Notice D…**: A notice was issued…

## 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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