# In the matter of Dinesh Polytubes Pvt. Ltd. CP (IB) No. 104-Chd-Hry-2017

> NCLT judgment dated 2017-12-11. Citation: TCN-2017-NCLT-00074. Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 11 Dec 2017
- **Citation:** TCN-2017-NCLT-00074
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dinesh-polytubes-pvt-ltd-cp-ib-no-104-chd-hry-2017-3af9c2ba

## Summary

### Background

Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate insolvency resolution process against M/s Dinesh Polytubes Pvt. Ltd., the Corporate Debtor, due to default on credit facilities. The bank's application was filed in Form No.1 as prescribed under the rules. The Corporate Debtor raised objections, including the validity of the authorization for filing the petition and allegations of overreaching procedures under the SARFAESI Act, particularly concerning the sale of mortgaged property.

## Facts

Punjab National Bank (PNB) sought to initiate insolvency proceedings against M/s Dinesh Polytubes Pvt. Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. PNB had sanctioned various credit facilities to the Corporate Debtor, including CC limits, CC book debt limits, and term loans, totaling ₹300 lacs in 2010. The Corporate Debtor's request for a CC limit of ₹30 lacs was approved on 04.03.2011, later enhanced to ₹250 lacs on 15.03.2011, along with a fresh term loan of ₹75 lacs. The Corporate Debtor executed various documents, including hypothecation agreements, to secure the credit facilities. The Corporate Debtor defaulted on payments, leading PNB to issue a recall notice on 08.01.2015, stating an outstanding amount of

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## Issues and analysis

### Issue 1: Whether the petition filed by Punjab National Bank under Section 7 of the Insolvency and Bankruptcy …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 is a self-contained code, and the Adjudicating

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**Reasoning:** The court considered the provisions of Section 7 of the IBC, 2016, and found that the

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**Interpretation:** Section 7 of the IBC provides the framework for a financial creditor to

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**Application:** The court applied the provisions of Section 7 to the facts of the case and

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** Punjab National…
- **Respondents:** M/s Dinesh…

## Timeline

- **1970-03-31 — Bank Incorp…**: Punjab National Bank was incorporated…
- **2009-06-10 — Corporate Debtor…**: M/s Dinesh Polytubes Pvt. Ltd. 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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