# In the matter of Ind-lab Equipments Pvt. Ltd. C.P. (IB) No. 319-BB-2019

> NCLT judgment dated 2020-02-19. Citation: TCN-2020-NCLT-01891. The case involves a petition filed by Sir M. Visvesvaraya Co-operative Bank Limited, the…

- **Court:** NCLT
- **Order date:** 19 Feb 2020
- **Citation:** TCN-2020-NCLT-01891
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ind-lab-equipments-pvt-ltd-cp-ib-no-319-bb-2019-f9033b92

## Summary

### Background

The case involves a petition filed by Sir M. Visvesvaraya Co-operative Bank Limited, the Financial Creditor, against Ind-Lab Equipments Pvt. Ltd., the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor allegedly defaulted on loan repayments amounting to Rs. 3,03,82,953 as of June 30, 2019, including interest. The Financial Creditor issued notices for repayment, but the Corporate Debtor failed to respond or regularize the loan. The Corporate Debtor cited demonetization and GST as reasons for its financial difficulties. The Financial Creditor filed the petition to initiate CIRP, appoint an Interim Resolution Professional (IRP), and impose a

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## Facts

Sir M. Visvesvaraya Co-operative Bank Limited, incorporated on April 15, 1979, is a Co-operative Bank and the Financial Creditor in this case. Ind-Lab Equipments Private Limited, incorporated on November 5, 2012, is a Private Limited Company and the Corporate Debtor. On August 13, 2014, the Corporate Debtor approached the Financial Creditor for financial assistance and applied for a loan. The Financial Creditor sanctioned two term loans: TL-4-30 for Rs. 2,27,00,000 and TL-4-44 for Rs. 48,00,000. The Corporate Debtor offered security for the loans, including existing computers, plant and machinery, electrical equipment, furniture, fixtures, and property. The Corporate Debtor defaulted on loan repayments, resulting in an outstanding amount of Rs. 3,03,82,953 as of June

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its loan …

**Ratio:** Section 3(12) of the IBC defines 'default' as non-payment of debt when it becomes due and

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had failed to repay the loan

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**Interpretation:** The definition of 'default' under Section 3(12) is broad and includes

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**Application:** The Corporate Debtor's failure to repay the loan installments, including

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Sir M. Visvesvaray…
- **Respondents:** Ind-Lab Equipments…

## Timeline

- **1979-04-15 — Incorporation of…**: Sir M. Visvesvaraya Co-operative…
- **2012-11-05 — Incorporation of…**: Ind-Lab Equipments Private…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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