# In the matter of Gupta Marriage Halls Pvt. Limited IB-979 -ND-2019

> NCLT judgment dated 2019-09-03. Citation: TCN-2019-NCLT-01607. Punjab National Bank, acting as a Financial Creditor, filed a petition against Gupta Marriage…

- **Court:** NCLT
- **Order date:** 3 Sept 2019
- **Citation:** TCN-2019-NCLT-01607
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gupta-marriage-halls-pvt-limited-ib-979-nd-2019-9919b286

## Summary

### Background

Punjab National Bank, acting as a Financial Creditor, filed a petition against Gupta Marriage Halls Pvt. Limited, the Corporate Debtor, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). The Corporate Debtor was incorporated on 23.2.1996. The Financial Creditor disclosed details of the financial debt and the circumstances leading to the default. A term loan of Rs.6.62 Crores and an overdraft of Rs.1.50 Crores were sanctioned to the Corporate Debtor, which was later enhanced in 2014 to Rs.4.60 Crores. The account was declared NPA on 29.7.2016, and a notice under Section 13(2) of the SARFAESI Act, 2002, was issued on 20.10.2016, followed by a Section 13(4) notice. On 31.3.2017, the debt was

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## Facts

Punjab National Bank (PNB) filed a petition as a Financial Creditor against Gupta Marriage Halls Pvt. Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). PNB's application disclosed that Gupta Marriage Halls was incorporated on 23.2.1996 with an authorized capital of Rs. 45,00,00,000 and a paid-up capital of Rs. 4,11,11,100. PNB had sanctioned a term loan of Rs. 6.62 Crores and an overdraft of Rs. 1.50 Crores to Gupta Marriage Halls, which was enhanced to Rs. 4.60 Crores in 2014. The account was declared NPA on 29.7.2016, leading to a notice under Section 13(2) of the SARFAESI Act on 20.10.2016, followed by a Section 13(4) notice. On 31.3.2017, the debt was restructured. Gupta Marriage Halls acknowledged the debt and sought time for

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## Issues and analysis

### Issue 1: Whether the petition filed by Punjab National Bank as a Financial Creditor against Gupta Marriage …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 (IBC) provides a framework for the resolution of

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**Reasoning:** The court reasoned that the Financial Creditor, Punjab National Bank, had submitted

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**Interpretation:** The IBC is interpreted to provide a mechanism for creditors to recover their

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**Application:** The court applied the provisions of the IBC to the facts presented, finding

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## Parties

- **Judges:** Sh.R. Varad…; K.K. V…
- **Appellants:** Punjab National…
- **Respondents:** Gupta Marriage…

## Timeline

- **1996-02-23 — Incorporation of…**: Gupta Marriage Halls Pvt.…
- **2016-07-29 — Account Decla…**: The account of the Corporate Debtor 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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