# In the matter of Hint Publication Private Limited Company Petition (IB)No. 515-ALD-2019

> NCLT judgment dated 2020-02-27. Citation: TCN-2020-NCLT-01779. The case involves a Company Petition (IB) No. 515/ALD/2019 filed by M/S HDB Financial Services…

- **Court:** NCLT
- **Order date:** 27 Feb 2020
- **Citation:** TCN-2020-NCLT-01779
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hint-publication-private-limited-company-petition-ibno-515-ald-2019-02d8434f

## Summary

### Background

The case involves a Company Petition (IB) No. 515/ALD/2019 filed by M/S HDB Financial Services LTD, a financial creditor, against M/S HINT PUBLICATION PRIVATE LIMITED, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was filed due to an unpaid liability of Rs. 8,49,58,980.30. The corporate debtor had availed a term loan of Rs. 4.75 Crores from the financial creditor, a Non-Banking Financial Company. The loan was disbursed after a sanction letter and execution of a loan agreement dated 29.04.2017. The loan was disbursed in two tranches on 16.10.2014 and 17.10.2014. The corporate debtor created an equitable mortgage over their property in Ghaziabad as security. The corporate debtor defaulted in repaying installments, leading

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## Facts

M/S HDB Financial Services LTD filed a petition against M/S HINT PUBLICATION PRIVATE LIMITED under Section 7 of the Insolvency and Bankruptcy Code, 2016, due to an unpaid liability of Rs. 8,49,58,980.30. The corporate debtor had taken a term loan of Rs. 4.75 Crores from the financial creditor, a Non-Banking Financial Company, which was disbursed on 29.04.2017 in two tranches on 16.10.2014 and 17.10.2014. The corporate debtor provided an equitable mortgage over their property in Ghaziabad as security. The corporate debtor defaulted on repayments, leading to the loan being recalled and classified as a Non-Performing Asset on 02.02.2016. The financial creditor initiated arbitration and secured two awards on 20.05.2016 and 27.06.2016. The corporate debtor expressed

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## Issues and analysis

### Issue 1: Whether the petition 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 court found that the corporate debtor had defaulted on its repayment obligations to

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

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**Application:** The court applied Section 7 to the facts of the case, noting that the financial

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## Parties

- **Judges:** Rajesh Daya…; Ina Mal…
- **Appellants:** M/S HDB FINANCIAL…
- **Respondents:** M/S HINT PUBLICATI…
- **Advocates:** Sh. Abhina…; Sh. Ashok Nath…

## Timeline

- **2014-10-16 — Loan Disbur…**: First tranche of loan (Rs. 3.4 Crores)…
- **2014-10-17 — Loan Disbur…**: Second tranche of loan (Rs. 1.35 Crores)…

## 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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