# In the matter of Bhareth Formulations Private Limied CP-1174-IB-2018

> NCLT judgment dated 2019-03-20. Citation: TCN-2019-NCLT-04377. The case pertains to a Company Petition filed by Bank of India, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 20 Mar 2019
- **Citation:** TCN-2019-NCLT-04377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhareth-formulations-private-limied-cp-1174-ib-2018-9a182fb8

## Summary

### Background

The case pertains to a Company Petition filed by Bank of India, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Bhareth Formulations Private Limited, the Corporate Debtor. The petition was filed due to the corporate debtor's default in repaying ₹23,32,93,675.78 against the various credit facilities sanctioned by the creditor.

## Facts

Bank of India sanctioned credit facilities to Bhareth Formulations Private Limited amounting to ₹1515.81 lakhs on 2013-07-15. The debtor executed various loan and security documents between 2013-08-01 and 2013-08-14. The credit facilities were renewed on 2014-01-27 and 2015-03-10. The loan account was classified as NPA on 2015-06-01. The creditor bank issued a notice to the debtor on 2016-02-10 demanding repayment. The creditor bank initiated DRT proceedings, and DRT-II, Chennai, ordered the recovery of ₹17.98 crores on 2018-03-01. A Debt Recovery Certificate (DRC No. 190/2018) was issued on 2018-05-07. The debtor defaulted in repaying ₹23,32,93,675.78. The creditor bank filed sanction letters, demand promissory notes, and other documents in support of the claim

…

## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

…

**Reasoning:** The court examined the documents and submissions made by the Financial Creditor and found

…

**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

…

**Application:** The court applied Section 7 to the facts presented, noting that the Financial

…

## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Respondents:** Bhareth Formulatio…

## Timeline

- **2013-07-15 — Sanction of Credit…**: The creditor sanctioned credit facilities to…
- **2013-08-01 — Execution of Loan…**: The debtor executed various loan and security…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/bhareth-formulations-private-limied-cp-1174-ib-2018-9a182fb8