# In the matter of Guman Furnitures and Services Pvt.  Ltd. CP No. (IB) 45-7-JPR-2018

> NCLT judgment dated 2019-03-01. Citation: TCN-2019-NCLT-04613. Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Mar 2019
- **Citation:** TCN-2019-NCLT-04613
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/guman-furnitures-and-services-pvt-ltd-cp-no-ib-45-7-jpr-2018-1222071e

## Summary

### Background

Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016) against M/s Guman Furniture and Services Pvt. Ltd., claiming a default of Rs. 15,21,380,048/- related to Cash Credit and Overdraft facilities. The Corporate Debtor's registered office is located in Jaipur. The Financial Creditor sought initiation of the Corporate Insolvency Resolution Process (CIRP).

## Facts

Punjab National Bank (PNB) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s Guman Furniture and Services Pvt. Ltd. The claim was for a total default of Rs. 15,21,380,048/- relating to Cash Credit and Overdraft facilities granted to the Corporate Debtor. The Corporate Debtor's registered office is in Jaipur. PNB, as the Financial Creditor, sought to initiate the Corporate Insolvency Resolution Process (CIRP). The account was declared NPA on 2016-09-13. Recall notices were issued on 2016-10-01. SARFAESI notices were also issued. The Corporate Debtor did not appear despite notices. The tribunal noted that the Corporate Debtor was served notice via email. The petitioner's counsel pointed out the sanction letter for the Cash

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## Issues and analysis

### Issue 1: Whether the petition filed by Punjab National Bank …

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate CIRP against a

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**Reasoning:** The tribunal considered the documents filed by the petitioner, including the loan

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**Interpretation:** Section 7 provides the mechanism for financial creditors to recover their dues

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**Application:** The tribunal found that Punjab National Bank had provided sufficient evidence

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## Parties

- **Judges:** R. VARADH…
- **Appellants:** Punjab National…
- **Respondents:** M/s Guman…

## Timeline

- **1991-05-29 — Power of At…**: Mr. K.C Mangal, Chief Manager of PNB,…
- **2015-01-21 — Cash Credit Facility…**: Cash Credit facility of Rs. 10 crores…

## 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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