# In the matter of Advance Navotpad Surfactants Ltd. CP No. IB-441-(PB)-2018

> NCLT judgment dated 2018-09-27. Citation: TCN-2018-NCLT-00699. The Bank of India, as the financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 27 Sept 2018
- **Citation:** TCN-2018-NCLT-00699
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/advance-navotpad-surfactants-ltd-cp-no-ib-441-pb-2018-327ddc52

## Summary

### Background

The Bank of India, as the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Advance Navotpad Surfactants Limited, the corporate debtor. The financial creditor claimed a default of Rs. 44,25,47,206.83 as of 16.04.2018. The corporate debtor had availed loan facilities, including Term Loan-I, Term Loan-II, and Working Capital Facilities, which were later classified as Non-Performing Assets (NPA) on 31.03.2016. The financial creditor submitted details of the loan disbursements, default dates, and relevant documents to support the application.

## Facts

Bank of India (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Advance Navotpad Surfactants Limited (Corporate Debtor). The Corporate Debtor availed loan facilities including Term Loan-I, Term Loan-II, and Working Capital Facilities. The total amount in default as of 16.04.2018 was Rs. 44,25,47,206.83. The account of the Corporate Debtor was declared as Non-Performing Asset (NPA) on 31.03.2016. The Financial Creditor provided details of loan disbursements, default dates, and relevant documents. The Corporate Debtor repeatedly sought time to file a reply but failed to do so. The Financial Creditor proposed the name of Mr. Sethurathnam Ravi as the

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7(2) of the IBC requires the financial creditor to make an application under

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**Reasoning:** The Adjudicating Authority observed that the application was filed on the proforma

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**Interpretation:** Section 7 of the IBC and the related rules outline the procedure and

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**Application:** The Adjudicating Authority found that the application filed by the Bank of

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Bank of…
- **Respondents:** Advance Navotpad…; M/s Advance…
- **Advocates:** Ranjit Singh…; Harvinder S…; +2 more

## Timeline

- **2014-04-05 — Sanction…**: Sanction letter no. GRG/ADV/GPK/2014-15/01…
- **2015-02-21 — Power of At…**: Mr. Ranvir Singh, Assistant General Manager of Bank of India, empowered to sign and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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