# In the matter of GEM Batteries Private Limited IB-921(ND)-2020

> NCLT judgment dated 2020-12-01. Citation: TCN-2020-NCLT-00197. RBL Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Dec 2020
- **Citation:** TCN-2020-NCLT-00197
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gem-batteries-private-limited-ib-921nd-2020-67b69230

## Summary

### Background

RBL Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Gem Batteries Private Limited. The application was filed due to a default on a loan facility extended to the corporate debtor. The corporate debtor was proceeded against ex-parte.

## Facts

RBL Bank Limited, the financial creditor, extended a loan facility of Rs. 5.50 Crores to Gem Batteries Private Limited, the corporate debtor, on April 28, 2012. The credit facilities were renewed and extended, with the last extension on February 15, 2016, for Rs. 14.50 Crores. As of January 31, 2020, the outstanding amount was Rs. 18,17,49,217.10, with an interest rate of 10.70% p.a. plus 2% penal interest. The corporate debtor's account was declared a Non-Performing Asset (NPA) on May 31, 2017. The application under Section 7 of the IBC was filed on March 20, 2020, within the limitation period. The financial creditor submitted documents, including a credit facility agreement, composite deed of hypothecation, demand promissory notes, agreement for irrevocable

…

## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

…

**Reasoning:** The court noted that the financial creditor had submitted sufficient documentary evidence

…

**Interpretation:** Section 7 of the IBC, 2016, provides a mechanism for financial creditors to

…

**Application:** In this case, the financial creditor, RBL Bank Limited, provided sufficient

…

## Parties

- **Judges:** Ch. Mohd Sharief…; Narender Kumar…
- **Appellants:** RBL Bank L…
- **Respondents:** GEM BATTERIES…; M/S. GEM BATTERIES…

## Timeline

- **2012-04-28 — Loan Facility…**: RBL Bank Limited extended a loan facility amounting to Rs.5.50 Crores to Gem Batteries…
- **2016-02-15 — Credit Facilities…**: Credit facilities were extended vide sanction letter for an aggregate amount of Rs. 14.50…

## 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)

---

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/gem-batteries-private-limited-ib-921nd-2020-67b69230