# In the matter of Bulland Buildtech Private Limited (IB)-1744(ND)2019

> NCLT judgment dated 2021-03-22. Citation: TCN-2021-NCLT-02616. The case originates from a petition filed by Canara Bank (erstwhile Syndicate Bank), the…

- **Court:** NCLT
- **Order date:** 22 Mar 2021
- **Citation:** TCN-2021-NCLT-02616
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bulland-buildtech-private-limited-ib-1744nd2019-5cc78e1d

## Summary

### Background

The case originates from a petition filed by Canara Bank (erstwhile Syndicate Bank), the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Financial Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Bulland Buildtech Private Limited, the Corporate Debtor, due to default on a term loan. The Financial Creditor also filed an application to substitute the name of Syndicate Bank with Canara Bank following the amalgamation of Syndicate Bank into Canara Bank Scheme, 2020. The Corporate Debtor failed to file a reply despite opportunities.

## Facts

Canara Bank (formerly Syndicate Bank) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Bulland Buildtech Private Limited. The Financial Creditor had sanctioned a Term Loan of Rs. 37.80 Crore to the Corporate Debtor for a group housing residential complex named "Bulland Elevates". The Corporate Debtor's account was classified as NPA on 29.06.2018. The total claim amount, including interest, stood at Rs. 32,88,97,430.60. The Financial Creditor submitted a loan application dated 16.09.2015 and a sanction letter dated 01.07.2016. The Corporate Debtor failed to file a reply despite opportunities given by the court. The Financial Creditor also initiated proceedings

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has successfully established a default in payment of the Financial …

**Ratio:** Section 7(5) of the IBC allows for the admission of a petition if a default has occurred

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**Reasoning:** The court noted that the Financial Creditor provided sufficient evidence, including loan

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**Interpretation:** Section 7 of IBC requires the establishment of a financial debt and a default

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**Application:** The Financial Creditor provided evidence of a sanctioned loan, subsequent

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## Parties

- **Judges:** SHRI. ABNI RANJAN…; Shri. L. N.…
- **Appellants:** Canara…
- **Respondents:** M/s Bulland…

## Timeline

- **2015-09-16 — Loan Appli…**: The Corporate Debtor approached the Applicant Bank for sanction of certain credit…
- **2016-07-01 — Sanction…**: The Financial Creditor sanctioned a Term Loan…

## 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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