# In the matter of Aman Medicals Products Pvt. Ltd. Company Petition (IB)No. 126-ALD-2018

> NCLT judgment dated 2018-06-14. Citation: TCN-2018-NCLT-01261. The case pertains to a Company Petition (IB) No.126/ALD/2018 filed under Section 7 of the…

- **Court:** NCLT
- **Order date:** 14 Jun 2018
- **Citation:** TCN-2018-NCLT-01261
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aman-medicals-products-pvt-ltd-company-petition-ibno-126-ald-2018-a8f17507

## Summary

### Background

The case pertains to a Company Petition (IB) No.126/ALD/2018 filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy Rules, 2016. Punjab National Bank, the financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s Aman Medicals Products Pvt. Ltd., the corporate debtor, due to default in repayment of a bank loan. The corporate debtor raised objections regarding the application's validity, citing issues with authorization, incorrect default date, and limitation.

## Facts

Punjab National Bank, the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Aman Medicals Products Pvt. Ltd., the corporate debtor. The corporate debtor had approached the financial creditor for financial assistance in the form of cash credit and term loans, amounting to Rs 9.55 Cr. The cash credit facility was renewed on 16.12.2008, and equitable mortgages were created to secure the repayment. The account of the corporate debtor was declared NPA on 31.12.2010 due to continuous default in repayment. The amount claimed by the financial creditor as default was Rs.23,65,00,000/- as on 31.03.2017 along with interest. The corporate debtor raised objections to the application, including issues with authorization,

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## Issues and analysis

### Issue 1: Whether the application filed for initiating CIRP against the respondent company is without proper …

**Ratio:** A General Power of Attorney can authorize the delegation of power to an attorney holder

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**Reasoning:** The court found that the applicant had annexed proper authorization to initiate CIRP

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**Interpretation:** This clarifies that a General Power of Attorney can delegate authority for

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**Application:** The court applied this principle to the facts by noting that the applicant,

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## Parties

- **Judges:** SH. V.P.…; Ms Saroj R…
- **Appellants:** Punjab National…
- **Respondents:** M/s Aman Medicals…

## Timeline

- **1998-07-07 — Incorporation of…**: M/s Aman Medicals Products Pvt. Ltd. was…
- **2005-05-24 — Sanction Lett…**: Date of the sanction letter 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)

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