# In the matter of Gujarat Foils Ltd. CP (IB) No. 116-7-NCLT-AHM-2017

> NCLT judgment dated 2017-11-30. Citation: TCN-2017-NCLT-00115. The case involves an application filed by Allahabad Bank, the Financial Creditor, against…

- **Court:** NCLT
- **Order date:** 30 Nov 2017
- **Citation:** TCN-2017-NCLT-00115
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gujarat-foils-ltd-cp-ib-no-116-7-nclt-ahm-2017-56f10884

## Summary

### Background

The case involves an application filed by Allahabad Bank, the Financial Creditor, against Gujarat Foils Ltd., the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed that the Corporate Debtor defaulted on a loan of Rs. 55,00,00,000. The Corporate Debtor raised objections, including lack of authority to file the petition, non-filing of working computation, incorrect adjustment of fixed deposits, issues with loan documents under the Gujarat Stamp Act, and the Financial Creditor acting alone despite a JLF meeting. The Financial Creditor submitted additional affidavits and authority letters to address the issue of authorization.

## Facts

Allahabad Bank, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Gujarat Foils Ltd., the Corporate Debtor, seeking to initiate CIRP. The Financial Creditor claimed a default on a loan of Rs. 55,00,00,000. The Financial Creditor submitted various documents, including sanction letters, modification of sanction letters, registered extensions of mortgage, demand promissory notes, letters of continuing security, letters of hypothecation, undertakings, board resolutions, letters of guarantee, certified account statements, and demand notices. The Corporate Debtor raised objections, including lack of authority to file the petition, non-filing of working computation, incorrect adjustment of fixed deposits, issues

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## Issues and analysis

### Issue 1: Whether Mr. Kalu Ram Meena was authorized to file the petition on behalf of Allahabad Bank, the …

**Ratio:** A general authorization made by a Financial Creditor in favor of its officers to do

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**Reasoning:** The court considered the additional affidavit, Power of Attorney dated 8th October, 1996,

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**Interpretation:** The court interpreted the Power of Attorney and authority letters to determine

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Allahabad…
- **Respondents:** Gujarat Foi…

## Timeline

- **2017-11-30 — Order Da…**: Order pronounced in open Court admitting the petition under Section 7(5) of the IBC and…
- **2017-08-30 — Authority…**: Assistant General Manager, Shri S.K. Panigrahi, issued authority letter authorising Mr.…

## 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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