# In the matter of Belgium Aluminium & Glass Private Limited CP 1945 (IB)-MB-2019

> NCLT judgment dated 2019-08-27. Citation: TCN-2019-NCLT-01747. This case involves an application filed by Corporation Bank, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 27 Aug 2019
- **Citation:** TCN-2019-NCLT-01747
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/belgium-aluminium-glass-private-limited-cp-1945-ib-mb-2019-65a40705

## Summary

### Background

This case involves an application filed by Corporation Bank, the Financial Creditor, under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code), against Belgium Aluminium & Glass Industries Private Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The petition was filed on 27.05.2019. The applicant bank had extended a loan to the corporate debtor for ₹25,00,00,000/-, vide its sanction letters dated 27.01.2016 and revised the said limits vide its letter dated 25.05.2018. The account of the Corporate Debtor was declared Non-Performing Asset (NPA) on 16.07.2018.

## Facts

Corporation Bank filed an application under Section 7 of the I&B Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Belgium Aluminium & Glass Industries Private Limited. The application was filed on 27.05.2019. Corporation Bank had extended a loan of ₹25,00,00,000/- to the Corporate Debtor, sanctioned on 27.01.2016 and revised on 25.05.2018. The Corporate Debtor's account was declared an NPA on 16.07.2018. The outstanding amount, including interest, was ₹16,45,64,027.34/- as of 01.08.2017, and ₹18,76,36,277/- as of 30.04.2019. The Corporate Debtor admitted its liability of ₹17,28,94,785.34 as on 12.12.2018. The Corporate Debtor was served with a court notice but did not make any representation before the Tribunal. The applicant

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## Issues and analysis

### Issue 1: Whether the application filed by Corporation Bank under Section 7 of the I&B Code, 2016, for …

**Ratio:** Section 7 of the I&B Code, 2016, allows a financial creditor to initiate CIRP against

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**Reasoning:** The court found that the application was complete, the financial debt exceeded one lakh

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**Interpretation:** Section 7 of the I&B Code provides the mechanism for a financial creditor

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**Application:** The court applied Section 7 to the facts, noting that Corporation Bank had

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## Parties

- **Judges:** V. P. S…; RAJESH S…
- **Appellants:** Corporatio…
- **Respondents:** Belgium Aluminium…

## Timeline

- **2016-01-27 — Loan San…**: Corporation Bank sanctioned a loan of ₹25,00,00,000/- to Belgium Aluminium & Glass…
- **2018-05-25 — Loan Limit R…**: Corporation Bank revised the loan limits to Belgium Aluminium & Glass Industries Private…

## 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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