# In the matter of James Hotels Ltd. CP(IB) No.15-Chd-CHD-2017

> NCLT judgment dated 2017-04-27. Citation: TCN-2017-NCLT-00884. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Apr 2017
- **Citation:** TCN-2017-NCLT-00884
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/james-hotels-ltd-cpib-no15-chd-chd-2017-3fe18a17

## Summary

### Background

Punjab National Bank filed an application 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, to initiate the corporate insolvency resolution process against James Hotels Ltd. The application was filed due to the corporate debtor's default in making payments of its financial debt. The matter was listed, and the petitioner/financial creditor was directed to file an affidavit of dispatch of the notice to the registered office of the 'Corporate Debtor' and also furnish a fresh synopsis of dates and events. The matter was adjourned due to holidays. The 'Corporate Debtor' was incorporated on 25.08.1980 in the name of Mehfil Restaurants & Hotels Limited, and

…

## Facts

Punjab National Bank (PNB) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against James Hotels Ltd. due to a default in financial debt repayment. James Hotels Ltd. was originally incorporated as Mehfil Restaurants & Hotels Limited on August 25, 1980, and later changed its name in 1992. PNB sanctioned a term loan of ₹28.00 crores on January 9, 2010, and an additional ₹3.40 crores on November 29, 2012. The total amount in default was ₹52,57,19,407/- including interest up to March 31, 2017. The loan was secured by hypothecation of movable assets and a mortgage of the hotel constructed on a commercial plot in Chandigarh. Other financial institutions, including State Bank

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor has defaulted in making the payment of its financial debt, warranting …

**Ratio:** Section 3(12) of the Code defines 'default' as non-payment of debt when the whole or any

…

**Reasoning:** The Adjudicating Authority noted that there was no dispute regarding the default in

…

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

…

**Application:** The Corporate Debtor's failure to repay the term loans and the additional

…

## Parties

- **Judges:** R.P.Nag…; Deepa Kr…; +1 more
- **Appellants:** Punjab National…
- **Respondents:** James Hotel…

## Timeline

- **1980-08-25 — Incorpor…**: Corporate Debtor incorporated as…
- **1992-01-01 — Name Cha…**: Name of the company changed…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/james-hotels-ltd-cpib-no15-chd-chd-2017-3fe18a17