# In the matter of Chamber Construcitons Pvt. Ltd. CP No. 3962-IBC-NCLT-MB-MAH-2018

> NCLT judgment dated 2019-07-16. Citation: TCN-2019-NCLT-02505. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 16 Jul 2019
- **Citation:** TCN-2019-NCLT-02505
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/chamber-construcitons-pvt-ltd-cp-no-3962-ibc-nclt-mb-mah-2018-9e9c9dab

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Bank of Baroda (originally Dena Bank) against Chamber Constructions Pvt. Ltd., the Corporate Debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP). Dena Bank, later substituted by Bank of Baroda due to a merger, had provided a term loan of ₹45 Crores to the Corporate Debtor under the Dena Bank Mortgage Scheme, secured by a registered mortgage of 13 flats and a letter of guarantee. The loan facility was later converted into an Overdraft Facility. The Corporate Debtor defaulted on repayments, leading to its loan account being classified as NPA. The Financial Creditor initiated SARFAESI proceedings, which are still pending.

## Facts

Dena Bank (now Bank of Baroda) extended a term loan of ₹45 Crores to Chamber Constructions Pvt. Ltd. under the Dena Bank Mortgage Scheme, evidenced by a sanction letter dated 2009-11-06. The loan was secured by a registered mortgage deed dated 2009-11-24, mortgaging 13 flats. A letter of guarantee also secured the loan. A rectification deed was executed on 2010-03-02 to correct a flat number in the mortgage. The term loan was converted into an Overdraft Facility against Mortgage Limit for ₹30 Crores, approved on 2010-09-20. The Overdraft Limit was renewed on 2013-09-30 for ₹25.50 Crores at 13.50% p.a. and reviewed on 2015-03-31 for ₹18 Crores. The Corporate Debtor defaulted, and the loan account was classified as NPA on 2016-08-31. A SARFAESI notice was issued on

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## Issues and analysis

### Issue 1: Whether the petition filed by Shri Naik Vikas Anand is valid, considering the Corporate Debtor's …

**Ratio:** The legal maxim 'Omnia Praesumuntur rite et solemniter essaacta' (All acts are presumed

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**Reasoning:** The court reasoned that if the Corporate Debtor contends that the Power of Attorney was

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**Interpretation:** The maxim presumes that official acts are performed correctly. The burden of

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**Application:** Since the Corporate Debtor failed to provide substantive evidence that the

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Bank of B…
- **Respondents:** Chamber Constructi…

## Timeline

- **2009-11-06 — Sanction…**: Issuance of sanction letter…
- **2009-11-24 — Mortgage…**: Execution of registered…

## 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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