# In the matter of Bohra Industries Limited CP No. (IB)-157-7-JPR-2019

> NCLT judgment dated 2019-08-07. Citation: TCN-2019-NCLT-02040. STCI Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 7 Aug 2019
- **Citation:** TCN-2019-NCLT-02040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bohra-industries-limited-cp-no-ib-157-7-jpr-2019-1b7134e2

## Summary

### Background

STCI Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Bohra Industries Limited, claiming to be a Financial Creditor. The application seeks initiation of the Corporate Insolvency Resolution Process (CIRP) due to default in repayment of a loan amount. STCI Finance Limited, through its Assistant General Manager Mr. Rajesh Khanna, filed the application based on a board resolution dated 09.08.2017. The loan agreement between STCI Finance Limited and Bohra Industries Limited was dated 21.12.2017, with a loan amount of Rs. 24,00,00,000/- disbursed to Bohra Industries Limited for a tenure of six years against mortgage of various properties. The Corporate Debtor defaulted on the loan repayment, leading to the account

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## Facts

STCI Finance Limited (the Applicant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Bohra Industries Limited (the Corporate Debtor). The Applicant claimed to be a Financial Creditor. The application was filed through Mr. Rajesh Khanna, Assistant General Manager of STCI Finance Limited, authorized by a board resolution dated 09.08.2017. The Corporate Debtor had availed financial facility and entered into a Loan Agreement dated 21.12.2017, whereby a loan amount of Rs. 24,00,00,000/- was disbursed by the Applicant to the Corporate Debtor for a tenure of six years against mortgage of various properties. The Corporate Debtor was under obligation to pay the interest @12.60% p.a. with monthly rests and the principal loan amount

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## Issues and analysis

### Issue 1: Whether the application filed by STCI Finance Limited under Section 7 of the IBC, 2016 is …

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

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**Reasoning:** The court perused the relevant papers and found them to be in order. The Registered

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**Interpretation:** Section 7 of IBC, 2016 provides the mechanism for a financial creditor to

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**Application:** The application filed by STCI Finance Limited was found to be in order, and the

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## Parties

- **Judges:** POONDLA BHASKARA…; RaghuNa…
- **Appellants:** STCI Finance…
- **Respondents:** Bohra Industries…

## Timeline

- **2017-08-09 — Board Reso…**: Board resolution passed by STCI Finance Limited authorizing Mr. Rajesh Khanna to file the…
- **2017-11-15 — Letter of…**: Letter of Intent detailing 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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