# In the matter of Beton Concrete Products Private Limited CP (IB) 3026/MB-C-IV-2019

> NCLT judgment dated 2020-04-28. Citation: TCN-2020-NCLT-01400. The case pertains to a Company Petition filed under Section 7 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 28 Apr 2020
- **Citation:** TCN-2020-NCLT-01400
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/beton-concrete-products-private-limited-cp-ib-3026mb-c-iv-2019-d27491c7

## Summary

### Background

The case pertains to a Company Petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) by The Janata Sahakari Bank Limited (Financial Creditor) seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Beton Concrete Products Private Limited (Corporate Debtor). The Corporate Debtor is a private company limited by shares and incorporated on 20.01.1984. The Financial Creditor had availed certain facilities in the form of Cash Credit, Temporary Overdraft and Term Loan on 16.08.2017. Following default, the loan accounts of the Corporate Debtor were classified as Non-Performing Assets (NPA) on 28.02.2019. The Financial Creditor recalled the entire facilities vide Recall Notice dated 29.06.2018. Symbolic possession of the

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## Facts

The Janata Sahakari Bank Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Beton Concrete Products Private Limited, the Corporate Debtor. The Corporate Debtor had availed credit facilities from the Financial Creditor, including Cash Credit, Temporary Overdraft, and Term Loan, disbursed between 18.08.2017 and 05.12.2018. The Corporate Debtor defaulted on payments, leading to the loan accounts being classified as Non-Performing Assets (NPA) on 28.02.2019. The Financial Creditor recalled the facilities on 29.06.2018 and took symbolic possession of properties on 20.06.2019 under the SARFAESI Act. The total debt due to the Financial Creditor

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of a …

**Ratio:** The legal principle applied is that if a corporate debtor fails to make payments on its

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**Reasoning:** The court reasoned that the Corporate Debtor admitted to the liability and was unable to

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**Interpretation:** This issue involves interpreting the provisions of the IBC related to default

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**Application:** The court applied the ratio to the facts of the case, noting that the Corporate

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## Parties

- **Judges:** Rajasekha…; Ravikumar…; +1 more
- **Respondents:** Beton Concrete…

## Timeline

- **1984-01-20 — Incorporation of…**: Beton Concrete Products Private Limited was…
- **2017-08-16 — Credit Facilities…**: The Financial Creditor availed certain facilities in the form of Cash Credit, Temporary…

## 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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