# In the matter of Harneshwar Agro Products Power and Years (India) Ltd.  CP (IB) - 162-MB-2019

> NCLT judgment dated 2019-06-26. Citation: TCN-2019-NCLT-02780. Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 26 Jun 2019
- **Citation:** TCN-2019-NCLT-02780
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/harneshwar-agro-products-power-and-years-india-ltd-cp-ib-162-mb-2019-960375ab

## Summary

### Background

Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking the Corporate Insolvency Resolution Process (CIRP) against Harneshwar Agro Products Power & Yeast (I) Ltd. The bank claimed that the corporate debtor had defaulted on a loan amounting to Rs. 45,82,14,984/-. The bank had sanctioned term loans, working capital loans, and cash credit facilities to the corporate debtor in 2005, which were subsequently renewed/revised. The corporate debtor raised objections, including allegations of violations of various laws and principles of natural justice.

## Facts

Punjab National Bank sanctioned term loans, working capital loans, and cash credit facilities to Harneshwar Agro Products Power & Yeast (I) Ltd. in 2005, which were subsequently renewed/revised. As of 06.01.2019, the outstanding amount was Rs. 45,82,14,984/-. The bank provided security documents, including term loan agreements, deeds of hypothecation, and simple mortgages. The bank issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 12.11.2011, claiming Rs. 12,82,06,949/- as on 31.10.2011. The Corporate Debtor filed replies on 08.04.2019 and 11.06.2019, raising contentions including violations of the Insolvency and Bankruptcy Code, Indian Contract Act, Indian Evidence Act, Bankers Books Evidence Act and Articles 14, 21, 141 of the Constitution of

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in repaying …

**Ratio:** The Adjudicating Authority must determine if a default has occurred based on the

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**Reasoning:** The Adjudicating Authority, on perusal of the documents filed by the Petitioner, is of

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**Interpretation:** The legal issue is whether the corporate debtor failed to meet its repayment

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**Application:** The Adjudicating Authority reviewed the documents and found that the Corporate

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Punjab National…
- **Respondents:** Harneshwar Agro…

## Timeline

- **2005-01-01 — Loan San…**: Punjab National Bank sanctioned term loan, working capital loan, cash credit, etc. to the…
- **2011-11-12 — SARFAESI…**: The Petitioner issued notice on 12.11.2011 u/s 13(2) SARFAESI Act, 2002 claiming a sum of…

## 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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