# In the matter of Ajaz Nanda Designs Private Limited Company Petition No. (IB)-1739(PB)-2018

> NCLT judgment dated 2019-05-21. Citation: TCN-2019-NCLT-03232. The Jammu & Kashmir Bank Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 21 May 2019
- **Citation:** TCN-2019-NCLT-03232
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ajaz-nanda-designs-private-limited-company-petition-no-ib-1739pb-2018-7aecb6e9

## Summary

### Background

The Jammu & Kashmir Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Ajaz Nanda Designs Private Limited, the corporate debtor. The application was filed due to the corporate debtor's failure to repay outstanding dues. The applicant bank claimed a total outstanding amount of Rs. 1,97,33,643.49/- as of 01.11.2018, along with further interest. The corporate debtor was proceeded against ex-parte due to their absence despite substituted service.

## Facts

Jammu & Kashmir Bank Limited, a 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 Ajaz Nanda Designs Private Limited, the corporate debtor. The corporate debtor had availed various credit facilities from the applicant bank in 2011, including packing credit limit, cash credit, post shipment credit, and a term loan. These facilities were renewed and modified over time, with the last renewal occurring in 2015. As of 01.11.2018, the total outstanding amount was Rs. 1,97,33,643.49/-, including interest. The corporate debtor's account was declared NPA on 31.03.2017, and a loan recall notice was issued on 01.04.2017. Despite the notice, the corporate

…

## Issues and analysis

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

**Ratio:** An application under Section 7 of the Code is acceptable if the debt is proved to be due,

…

**Reasoning:** The court reasoned that the applicant bank had placed on record various documents

…

**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

…

**Application:** The court found that the application was complete, the debt was proven to be

…

## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Jammu And Kashmir…
- **Respondents:** M/s Ajaz Nanda…

## Timeline

- **2011-01-24 — Incorporation of…**: M/s Ajaz Nanda Designs…
- **2011-03-28 — Sanction…**: Sanction letter issued for credit…

## 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/nclt-chandigarh/ajaz-nanda-designs-private-limited-company-petition-no-ib-1739pb-2018-7aecb6e9