# In the matter Rishi Ganga Power Corporation Ltd.

> NCLT judgment dated 2018-01-25. Citation: TCN-2018-NCLT-01895. Punjab National Bank filed a petition under Section 7 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Jan 2018
- **Citation:** TCN-2018-NCLT-01895
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/in-the-matter-rishi-ganga-power-corporation-ltd-5569d686

## Summary

### Background

Punjab National Bank filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against M/s Rishi Ganga Power Corporation Ltd. The corporate debtor was incorporated to set up an 8.25 MW hydro power project. The bank sanctioned and released multiple term loans and FITL facilities to the corporate debtor, which were secured by hypothecation, guarantees, and equitable mortgages. The corporate debtor defaulted on repayments, leading to the account being classified as NPA. The bank initiated recovery proceedings under SARFAESI Act and filed an application before the Debt Recovery Tribunal. The corporate debtor raised objections regarding the maintainability of the petition, competency of the Assistant General Manager to file the petition, and the

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## Facts

Punjab National Bank (PNB) extended financial facilities to M/s Rishi Ganga Power Corporation Ltd. for setting up a hydro power project. The initial term loan of ₹25 crores was sanctioned on 04.07.2006, followed by additional facilities, bringing the total to ₹47.16 crores by 2009. The project faced delays, and the loan was restructured multiple times, including a fresh FITL of ₹6.23 crores in 2012 and ₹12.89 crores in 2013, raising the overall facilities to ₹66.28 crores. The accounts became irregular, classified as NPA on 19.02.2016. A demand notice under Section 13(2) of SARFAESI Act, 2002, was issued on 08.03.2016, demanding ₹75,04,04,961.91. The corporate debtor cited a cloud burst on 11.08.2016, causing significant damage to the project, which was insured for ₹94

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## Issues and analysis

### Issue 1: Whether the petition filed through Mr.Viney Kumar Bhandari, Assistant General Manager, PNB, is …

**Ratio:** A general authorization by a Financial Creditor to its officers to do the needful in

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**Reasoning:** The court found that the circulars issued by the financial creditor authorized the

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**Interpretation:** The court interpreted that a specific authorization to file a petition under

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**Application:** The court applied the ratio to the facts, finding that Mr. Viney Kumar

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** Punjab National…
- **Respondents:** M/s Rishi Ganga…

## Timeline

- **1970-03-31 — Banking Compa…**: Punjab National Bank constituted under Banking Companies (Acquisition & Transfer of…
- **1989-12-30 — Power of At…**: Power of attorney dated 30.12.1989 Annexure…

## 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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