# In the matter of Hindusthan National Glass & Industries Limited C.P (IB) No.369-KB-2020

> NCLT judgment dated 2021-10-21. Citation: TCN-2021-NCLT-00719. DBS Bank Limited, a financial creditor, filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 21 Oct 2021
- **Citation:** TCN-2021-NCLT-00719
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hindusthan-national-glass-industries-limited-cp-ib-no369-kb-2020-f630f5b4

## Summary

### Background

DBS Bank Limited, a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Hindusthan National Glass & Industries Limited, the corporate debtor, seeking initiation of the corporate insolvency resolution process (CIRP). The financial creditor claimed a default of Rs. 54,542,606.31 as of December 31, 2019. The corporate debtor opposed the application, arguing that it was not maintainable, as the financial creditor had already chosen an alternative mode of resolution and was pursuing measures for restructuring its accounts. The corporate debtor also contended that the legislative intent of the Code was not to force corporate persons into liquidation and that the application was an abuse of the process of law. The

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## Facts

DBS Bank Limited, a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Hindusthan National Glass & Industries Limited, the corporate debtor. The financial creditor claimed that the corporate debtor had defaulted on its financial obligations. The total debt granted and disbursed was USD 20 million and USD 40 million under ECB 1 and ECB 2 respectively. The amount claimed to be in default was Rs. 48,450,708.97 on account of principal and Rs. 6,091,897.34 towards interest, totaling Rs. 54,542,606.31, with the date of default stated as December 31, 2019. The corporate debtor argued that the application was not maintainable because the financial creditor had already chosen an alternative mode of resolution and

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The NCLT considered the pleadings and documents submitted by both parties and found that

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

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**Application:** The NCLT applied Section 7 to the facts of the case and found that the

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** DBS Bank L…
- **Respondents:** Hindusthan…

## Timeline

- **2011-08-17 — Facility Offe…**: A copy of Facility Offer Letter dated 17th…
- **2012-03-21 — Facility Offe…**: A copy of Facility Offer Letter dated 21st…

## 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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