# In the matter of Bhawani Castings Private Limited Company Petition No. (IB)-1492 (PB)-2018

> NCLT judgment dated 2019-09-03. Citation: TCN-2019-NCLT-01584. The case involves an application filed by Smt. Tejinder Kaur, a financial creditor, under…

- **Court:** NCLT
- **Order date:** 3 Sept 2019
- **Citation:** TCN-2019-NCLT-01584
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhawani-castings-private-limited-company-petition-no-ib-1492-pb-2018-a148fcbe

## Summary

### Background

The case involves an application filed by Smt. Tejinder Kaur, a financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Bhawani Castings Private Limited, the corporate debtor. The applicant claims to have lent money to the respondent company between 2007 and 2010. The respondent denies any outstanding dues, alleging that the applicant and her husband siphoned off company assets. The applicant had previously approached the High Court of Delhi for winding up the company, which was dismissed. A recovery suit filed by the applicant is also pending.

## Facts

Smt. Tejinder Kaur, claiming to be a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Bhawani Castings Private Limited. The applicant claims to have lent money to the respondent company between June 29, 2007, and February 24, 2010. The management of the respondent company was taken over by the father-in-law and husband of the applicant in 1998. The applicant was appointed as a director of the company on November 1, 2008, and resigned on March 20, 2011. The applicant approached the High Court of Delhi on November 8, 2012, for winding up the company, which was dismissed on February 19, 2013. The applicant filed a recovery suit on July 31, 2013, which is still pending. The respondent company denies any

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## Issues and analysis

### Issue 1: Whether the respondent company owes any money to the petitioner after the company's management …

**Ratio:** The principle is that if the existence of debt is highly disputed and requires detailed

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**Reasoning:** The court notes that the issue of whether the respondent owes any money to the petitioner

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**Interpretation:** The interpretation is that the court cannot definitively determine the

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**Application:** Given the disputed nature of the debt and the ongoing civil suit, the court

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Tejinder…
- **Respondents:** Bhawani Castings…

## Timeline

- **1992-08-20 — Incorporation of…**: Bhawani Castings Private…
- **1998-01-01 — Management T…**: Management of the respondent corporate debtor was taken over by the father-in-law and…

## 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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