# In the matter of Dev Blessing Traders Private Limited CP No. 1284-IBC-NCLT-MB-MAH-2017

> NCLT judgment dated 2017-12-01. Citation: TCN-2017-NCLT-00108. The Central Bank of India, as the Financial Creditor, filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 1 Dec 2017
- **Citation:** TCN-2017-NCLT-00108
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dev-blessing-traders-private-limited-cp-no-1284-ibc-nclt-mb-mah-2017-0baba01c

## Summary

### Background

The Central Bank of India, as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Dev Blessing Traders Private Limited, the Corporate Debtor, due to a default on a cash credit facility. The application was filed on August 4, 2017. The Corporate Debtor had approached the Applicant for a cash credit facility of ₹400 Lakhs, which was sanctioned on October 14, 2013. A hypothecation agreement was executed on October 31, 2013, providing a primary security in the form of stock and book debts, along with collateral security of directors' personal properties. The Debtor's account became NPA on December 29, 2015, leading to the issuance of notices under the SARFAESI Act and a loan recall notice.

## Facts

The Central Bank of India (Applicant/Financial Creditor) provided a cash credit facility of ₹400 Lakhs to M/s. Dev Blessing Traders Private Limited (Corporate Debtor). The loan was sanctioned on October 14, 2013, and a hypothecation agreement was executed on October 31, 2013. The Corporate Debtor defaulted on the repayment, and the account became a Non-Performing Asset (NPA) on December 29, 2015. The Applicant issued notices under Section 13(2) of the SARFAESI Act, 2002, and a loan recall notice. The Corporate Debtor did not respond to any of the notices. The Applicant filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, on August 4, 2017. The Corporate Debtor did not appear before the Tribunal. The total amount claimed to be in default is

…

## Issues and analysis

### Issue 1: Whether the debt in question qualifies as a 'Financial Debt' under Section 5(8) of the Insolvency …

**Ratio:** Section 5(8) of the Insolvency and

…

**Reasoning:** The court considered the evidence presented by the Applicant, including the loan sanction

…

**Interpretation:** The court interpreted Section 5(8) of the Code to include debts that are

…

**Application:** The court applied the definition of 'Financial Debt' to the facts of the case,

…

## Parties

- **Judges:** M.K. Sh…; Bhaskara Pantula…
- **Appellants:** Central Bank of…
- **Respondents:** M/s. Dev Blessing…

## Timeline

- **2013-08-20 — Application for Cash…**: The Corporate Debtor approached the Applicant…
- **2013-10-14 — Sanction of Cash Credit…**: The Applicant sanctioned the cash…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/dev-blessing-traders-private-limited-cp-no-1284-ibc-nclt-mb-mah-2017-0baba01c