# In the matter of Diamond Power Infrastructure Ltd. CP (IB) No. 137-7-NCLT-AHM-2018

> NCLT judgment dated 2018-08-24. Citation: TCN-2018-NCLT-00901. The case involves a petition filed by Bank of India under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 24 Aug 2018
- **Citation:** TCN-2018-NCLT-00901
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/diamond-power-infrastructure-ltd-cp-ib-no-137-7-nclt-ahm-2018-a3e98b6f

## Summary

### Background

The case involves a petition filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Diamond Power Infrastructure Ltd. The bank claims that the corporate debtor defaulted on a debt of Rs. 4,85,42,95,507.21. The bank disbursed a loan of Rs. 661.88 Crores to the corporate debtor between 2008 and March 30, 2015. The bank has also drawn attention to an internal circular of the Reserve Bank of India dated 02.12.2015, which directed banks to declare such accounts as Non-Performing Assets (NPA).

## Facts

Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Diamond Power Infrastructure Ltd. The bank claimed a default of Rs. 4,85,42,95,507.21. The loan was disbursed between 2008 and March 30, 2015, totaling Rs. 661.88 Crores. The account was declared a Non-Performing Asset (NPA) as per the Reserve Bank of India's internal circular dated 02.12.2015. The corporate debtor's directors expressed no objection to the admission of the petition. The bank submitted a power of attorney for its representative. The default was reported on 09.01.2015. The present petition was filed on 26.03.2018. Personal guarantees were executed by the directors in 2015.

## Issues and analysis

### Issue 1: Whether the application filed by the Bank of India is complete and in order for initiating the …

**Ratio:** The Hon'ble NCLAT in Palogix Infrastructure Private Limited Vs. ICICI Bank Limited held

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**Reasoning:** The court relied on the NCLAT's decision to determine if the application was signed by a

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**Interpretation:** The legal position is that an authorized representative of a financial creditor

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**Application:** The court found that the application was signed by the Assistant General

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## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Appellants:** Bank of…
- **Respondents:** Diamond Power…

## Timeline

- **2008-01-01 — Loan Disbursem…**: Bank of India started disbursing loan…
- **2015-03-30 — Loan Disburse…**: Bank of India completed disbursing loan…

## Legal provisions

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

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