# In the matter of Hillary Fashion Cotfab Ltd. C.P. (IB) No. 526-NCLT-AHM-2018

> NCLT judgment dated 2019-10-23. Citation: TCN-2019-NCLT-00835. The case pertains to an application filed by Dena Bank, now Bank of Baroda, under Section 7 of…

- **Court:** NCLT
- **Order date:** 23 Oct 2019
- **Citation:** TCN-2019-NCLT-00835
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hillary-fashion-cotfab-ltd-cp-ib-no-526-nclt-ahm-2018-051e2bbe

## Summary

### Background

The case pertains to an application filed by Dena Bank, now Bank of Baroda, under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for the recovery of outstanding dues from the corporate debtor, Hillary Fashion Cotfab Ltd. The financial creditor claimed a default in repayment of loan amount.

## Facts

Dena Bank, now Bank of Baroda, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Hillary Fashion Cotfab Ltd. for recovery of outstanding dues amounting to Rs. 6,46,18,619.10. The respondent, Hillary Fashion Cotfab Ltd., had availed loan facilities starting from May 2014. The account of the corporate debtor was declared NPA by the financial creditor on 31.12.2015. The petitioner had initiated proceedings before DRT and under SARFAESI Act. The last transaction in the cash credit account was on 28.01.2016, and in the term loan account, it was on 13.07.2017. The application was found to be complete, and the Adjudicating Authority was satisfied that a default had been committed by the Corporate Debtor in repayment of the loan amount.

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiation …

**Ratio:** The Adjudicating Authority must be satisfied that the application is complete as per the

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**Reasoning:** The Authority examined the records submitted with the application, including Form 1

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**Interpretation:** Section 7 of the IBC requires the Financial Creditor to submit a complete

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**Application:** The application was found to be complete as it included all the necessary

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Bank of B…
- **Respondents:** Hillary Fashion…
- **Advocates:** Aman Sh…; Atul Sh…; +1 more

## Timeline

- **2014-05-01 — Loan Facilitie…**: The respondent, Hillary Fashion Cotfab Ltd., availed loan facilities starting from May…
- **2015-12-31 — Account Decla…**: The account of the corporate debtor was declared NPA by the financial creditor on…

## 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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