# in the matter of Concord Hospitality Pvt. Ltd. CP (IB) No. 43-Chd-Pb-2017

> NCLT judgment dated 2017-08-04. Citation: TCN-2017-NCLT-00659. Punjab National Bank, acting as the Financial Creditor, filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 4 Aug 2017
- **Citation:** TCN-2017-NCLT-00659
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/concord-hospitality-pvt-ltd-cp-ib-no-43-chd-pb-2017-90198b74

## Summary

### Background

Punjab National Bank, acting as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the insolvency resolution process against M/s Concord Hospitality Pvt. Ltd., the Corporate Debtor. The application was filed due to the Corporate Debtor's default in repaying a total loan of ₹25,00,00,000/-. The Financial Creditor presented various loan documents, including loan applications, sanction letters, and guarantee agreements, as evidence of the debt and default. The Corporate Debtor raised objections, including the lack of necessary certifications under the Bankers' Books Evidence Act and the pendency of a restructuring proposal.

## Facts

Punjab National Bank (PNB) extended loan facilities totaling ₹25,00,00,000 to M/s Concord Hospitality Pvt. Ltd. The loan consisted of term loans and working capital. The Corporate Debtor defaulted on repayments, leading PNB to declare the account as a Non-Performing Asset (NPA) on 14.07.2016. PNB issued a recall notice on 31.01.2017, demanding repayment of ₹13,34,38,741.78 as of 01.07.2016, plus interest. The Corporate Debtor submitted a restructuring proposal on 26.07.2017 and offered to deposit ₹125 lacs. PNB filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP). The application was initially found to have defects regarding the certification of account statements under the

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## Issues and analysis

### Issue 1: Whether the Financial Creditor's application under Section 7 of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 7 of the IBC allows a financial creditor, either individually or jointly with

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**Reasoning:** The court found that the Financial Creditor had presented overwhelming evidence of

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**Interpretation:** Section 7 of the IBC provides the mechanism for financial creditors to initiate

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**Application:** In this case, the Financial Creditor, Punjab National Bank, demonstrated that

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## Parties

- **Judges:** M. M. K…; R.P.Nag…
- **Appellants:** Punjab National…
- **Respondents:** M/s. Concord…

## Timeline

- **2016-07-14 — Account decla…**: The account of the 'Corporate-Debtor' was…
- **2017-01-31 — Recall Notice…**: The petitioner bank…

## 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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