# In the matter of BCC Estate Pvt. Ltd. CP (IB) No. 81-7-NCLT-2017

> NCLT judgment dated 2017-09-06. Citation: TCN-2017-NCLT-00460. IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 6 Sept 2017
- **Citation:** TCN-2017-NCLT-00460
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bcc-estate-pvt-ltd-cp-ib-no-81-7-nclt-2017-c188a1cb

## Summary

### Background

IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against BCC Estates Private Limited, treating it as a Corporate Guarantor/Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process. The application stems from BCC Estates' role as a corporate guarantor for a loan provided to Bhatia Global Trading Ltd., which defaulted on its payments.

## Facts

IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against BCC Estates Private Limited, seeking to initiate Corporate Insolvency Resolution Process. BCC Estates acted as a corporate guarantor for financial assistance of Rs. 85.00 Crores granted to Bhatia Global Trading Ltd. on 17.3.2011. Bhatia Global Trading Ltd. availed a loan aggregating to Rs. 80 Crores, secured by the corporate guarantee of BCC Estates. Bhatia Global Trading Ltd. defaulted on the loan, leading IDBI Bank to issue a notice on 7th March, 2017, demanding payment of Rs. 82,04,12,819.41 plus interest. BCC Estates failed to make the payment. IDBI Bank had also filed an insolvency petition against Bhatia Global Trading Ltd., which was admitted on 23.5.2017.

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## Issues and analysis

### Issue 1: Whether Mr. Amit Kumar Nanda had the proper authority to file the application on behalf of IDBI …

**Ratio:** The Delegation of Powers, Chapter No.25, authorizes the Deputy General Manager of the

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**Reasoning:** The court referenced the Delegation of Powers within IDBI Bank, which explicitly grants

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**Interpretation:** This clarifies the internal authorization procedures within the bank and

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**Application:** Since Mr. Amit Kumar Nanda is the Deputy General Manager, he is authorized to

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** IDBI Bank…
- **Respondents:** BCC Estate Pvt…

## Timeline

- **2011-03-17 — Guarantee Ag…**: Guarantee Agreement executed by the…
- **2011-03-17 — Loan Ava…**: Bhatia Global Trading Ltd. availed the…

## 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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