# In the matter of Deccan Chronicle Holdings Limited CP No. IB-41-7-HDB-2017

> NCLT judgment dated 2017-07-05. Citation: TCN-2017-NCLT-00762. Canara Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC)…

- **Court:** NCLT
- **Order date:** 5 Jul 2017
- **Citation:** TCN-2017-NCLT-00762
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deccan-chronicle-holdings-limited-cp-no-ib-41-7-hdb-2017-0be32fee

## Summary

### Background

Canara Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Deccan Chronicle Holdings Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The bank claimed that Deccan Chronicle had defaulted on a debt of Rs. 723,75,09,963 as of February 20, 2017. The bank presented documentary evidence, including balance sheets, demand notices under the SARFAESI Act, and statements of account, to support its claim. Deccan Chronicle opposed the petition, raising objections related to jurisdiction, the existence of default, discrepancies in the claim amount, and the pendency of winding-up proceedings before the High Court and a status quo order by the Supreme Court.

## Facts

Canara Bank, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against Deccan Chronicle Holdings Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor had defaulted on a debt of Rs. 723,75,09,963 as of February 20, 2017. The Financial Creditor presented documentary evidence, including the Corporate Debtor's balance sheets for the year 2011-2012, demand notices issued under Section 13(2) of the SARFAESI Act 2002 on December 31, 2012, and possession notices published in newspapers on March 16, 2013. The Corporate Debtor had also filed CA Nos. 347 and 346 of 2013 seeking sanction of a composite scheme of demerger and arrangement before the High Court, in which it admitted a total

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## Issues and analysis

### Issue 1: Whether the NCLT has jurisdiction to entertain the petition under Section 7 of the IBC, given the …

**Ratio:** Section 238 of the IBC contains a non-obstante clause, which gives the IBC overriding

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**Reasoning:** The NCLT reasoned that the pendency of winding-up proceedings before the High Court or a

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**Interpretation:** Section 238 of the IBC is interpreted to mean that the IBC is a special

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**Application:** In this case, the NCLT held that the pendency of winding-up proceedings before

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## Parties

- **Judges:** Rajeswara Rao…; RavikumarDu…
- **Appellants:** Canara…
- **Respondents:** Deccan Chronicle…

## Timeline

- **2012-09-08 — Account Classified as…**: The account of the Corporate Debtor was…
- **2012-12-01 — OA Filed Bef…**: Financial Creditor filed OA No. 817/2012 before the Hon'ble Debts Recovery Tribunal at…

## 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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