# In the matter of Arcee Ispat Udyog Ltd. CP (IB) 49-Chd-Hry-2017

> NCLT judgment dated 2017-08-30. Citation: TCN-2017-NCLT-00504. The case pertains to an application filed by Punjab National Bank (PNB) under Section 7 of the…

- **Court:** NCLT
- **Order date:** 30 Aug 2017
- **Citation:** TCN-2017-NCLT-00504
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arcee-ispat-udyog-ltd-cp-ib-49-chd-hry-2017-03ddc53e

## Summary

### Background

The case pertains to an application filed by Punjab National Bank (PNB) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Arcee Ispat Udyog Ltd., seeking initiation of the corporate insolvency resolution process (CIRP). PNB, the financial creditor, claimed that Arcee Ispat Udyog Ltd. had defaulted on its loan repayments. The corporate debtor challenged the maintainability of the petition, raising objections regarding the authorization of the person who filed the petition on behalf of the bank and the nomination of the Interim Resolution Professional (IRP). The bank contended that it had extended credit facilities to the corporate debtor, which were secured by hypothecation and mortgage of properties. The corporate debtor had defaulted in

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## Facts

Punjab National Bank (PNB) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Arcee Ispat Udyog Ltd. PNB claimed that Arcee Ispat Udyog Ltd. had defaulted on its loan repayments. Arcee Ispat Udyog Ltd. was incorporated on 17.12.1987 with an authorized share capital of ₹4,00,00,000/- and a paid-up share capital of ₹3,92,04,000/-. The company is engaged in the manufacturing of galvanizing of MS pipe/tubes. PNB had extended credit facilities to Arcee Ispat Udyog Ltd. since 07.04.1989, with the last sanction granted on 14.03.2013. The credit facilities were secured by hypothecation of goods and book debts, movable assets, and current assets, as well as mortgage of properties. Arcee Ispat Udyog Ltd. defaulted in payment of

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## Issues and analysis

### Issue 1: Whether the petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, has been filed by …

**Ratio:** A general power of attorney authorizing a person to take legal proceedings for recovering

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**Reasoning:** The NCLT considered the terms of the General Power of Attorney (GPA) dated 05.11.2015

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**Interpretation:** The court interpreted the scope of the General Power of Attorney (GPA) in

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**Application:** The NCLT applied the ratio to the facts of the case, noting that the GPA

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** Punjab National…
- **Respondents:** Arcee Ispat Udyog…; M/s Arcee Ispat…
- **Advocates:** Mr.R.S.B…; Mr.Manish…; +1 more

## Timeline

- **1970-03-31 — Incorporation of…**: The petitioner Bank was incorporated under the Banking Companies (Acquisition and…
- **1987-12-17 — Incorporation of…**: The Respondent-Corporate Debtor was incorporated with authorised share capital of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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