# In the matter of D S Kulkarni Developers Limited CP 1633(IB)-MB-2019

> NCLT judgment dated 2019-09-26. Citation: TCN-2019-NCLT-01224. The case pertains to an application filed by Bank of Maharashtra under Section 7 of the…

- **Court:** NCLT
- **Order date:** 26 Sept 2019
- **Citation:** TCN-2019-NCLT-01224
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/d-s-kulkarni-developers-limited-cp-1633ib-mb-2019-7451c877

## Summary

### Background

The case pertains to an application filed by Bank of Maharashtra under Section 7 of the Insolvency and Bankruptcy Code, 2016, against D.S. Kulkarni Developers Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The bank had sanctioned credit facilities to the corporate debtor, which subsequently defaulted on its repayment obligations. The bank classified the account as a Non-Performing Asset (NPA) and initiated recovery proceedings before the Debts Recovery Tribunal (DRT).

## Facts

Bank of Maharashtra filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against D.S. Kulkarni Developers Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The bank had sanctioned credit facilities aggregating to ₹92,92,06,014/- to the corporate debtor, as per a sanction letter dated 24.02.2016. The date of default was 29.07.2017, and the amount in default was ₹119,48,89,348/-, including unapplied interest. The credit facilities were secured, and the charge was registered in favor of the bank. The bank issued a notice under Section 13(2) of the Securitization & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, classifying the account as a Non-Performing Asset (NPA) on

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the I&B Code, 2016, for initiation of Corporate …

**Ratio:** As per the judgment of the Hon'ble Supreme Court in Innoventive Industries Ltd. vs. ICICI

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**Reasoning:** The court reasoned that the financial creditor had submitted sufficient documents to

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**Interpretation:** Section 7 of the I&B Code allows a financial creditor to initiate CIRP

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**Application:** In this case, the bank, as the financial creditor, proved the existence of debt

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## Parties

- **Judges:** V. P. S…; RAJESH S…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** D.S. KULKARNI…

## Timeline

- **2016-02-24 — Sanction Lett…**: The Applicant had sanctioned certain credit facilities to the Corporate Debtor…
- **2017-07-24 — Account Classified as…**: The account of the Corporate Debtor was…

## 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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