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

> NCLT judgment dated 2019-09-03. Citation: TCN-2019-NCLT-01615. 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-01615
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gupta-marriage-halls-pvt-limited-ib-979-nd-2019-b188c0ba

## 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. 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. The account of the Corporate Debtor was declared NPA on 29.7.2016, and a notice under Section 13(2) of the SARFAESI Act, 2002, was issued, followed by a Section 13(4) notice. The Corporate Debtor's debt was restructured on 31.3.2017 at their request. Despite acknowledging the debt and seeking time for restructuring, the Corporate Debtor did not fulfill

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## Facts

Punjab National Bank (PNB) filed a petition as a Financial Creditor against Gupta Marriage Halls Pvt. Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated on 23.2.1996. PNB sanctioned a term loan and overdraft facility to the Corporate Debtor, which was enhanced over time, reaching Rs.4.60 crores in 2014. The Corporate Debtor's account was declared a Non-Performing Asset (NPA) on 29.7.2016. 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 restructured at the Corporate Debtor's request. Despite acknowledging the debt and seeking restructuring, the Corporate Debtor failed to meet its obligations. PNB also filed

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor, Punjab National Bank, against the Corporate …

**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 had submitted sufficient evidence to

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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 of the case, 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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