# In the matter of Dhavalpratapsinh Mohitepatil Agro Industries Limited C.P. (IB) No. 3610-NCLT-MB-2019

> NCLT judgment dated 2020-02-20. Citation: TCN-2020-NCLT-01860. Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 Feb 2020
- **Citation:** TCN-2020-NCLT-01860
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dhavalpratapsinh-mohitepatil-agro-industries-limited-cp-ib-no-3610-nclt-mb-2019-063de993

## Summary

### Background

Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Dhavalpratapsinh Mohitepatil Agro Industries Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to a default of ₹82,22,50,347/- including interest as on 31.08.2019. The bank had sanctioned credit facilities to the corporate debtor, which were later classified as Non-Performing Assets (NPA).

## Facts

Punjab National Bank (PNB) sanctioned credit facilities to Dhavalpratapsinh Mohitepatil Agro Industries Limited, amounting to ₹35,36,00,000/- through three sanction letters dated 20.03.2009, 10.05.2010, and 15.03.2011. Term Loan Agreements were executed on 18.04.2009, 19.05.2010, and 19.03.2011, secured by Deeds of Mortgage dated 17.04.2009, 11.05.2010, and 18.03.2011, and Deeds of Hypothecation dated 18.04.2009, 19.05.2010, and 19.03.2011. The Corporate Debtor confirmed the financial debt via Balance and Security Confirmation Letters dated 21.04.2012. The Corporate Debtor defaulted on repayments, leading PNB to classify the account as NPA on 01.07.2012 and issue a SARFAESI notice on 03.07.2013 for ₹30,85,04,838/-. The outstanding balance was ₹22,02,06,290/- as of the

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 7 of the …

**Ratio:** Section 7 of the I&B Code, 2016 allows a financial creditor to initiate CIRP against

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**Reasoning:** The court observed that the petition was complete and filed in the proper form. The

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

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**Application:** The court applied Section 7 to the facts, noting that PNB, as a financial

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## Parties

- **Judges:** Mr Bhaskara…; Mr Rajesh…
- **Appellants:** Punjab National…
- **Respondents:** Dhavalpratapsinh…
- **Advocates:** Falguni…

## Timeline

- **2009-03-20 — Sanction…**: Punjab National Bank sanctioned credit…
- **2010-05-10 — Sanction…**: Punjab National Bank sanctioned credit…

## 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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