# In the matter of Jogma Laminates Industry Private Limited CP 4065 (IB)-MB-2018

> NCLT judgment dated 2019-04-25. Citation: TCN-2019-NCLT-03694. Dena Bank filed a petition CP 4065/2018 under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Apr 2019
- **Citation:** TCN-2019-NCLT-03694
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jogma-laminates-industry-private-limited-cp-4065-ib-mb-2018-6e36eda2

## Summary

### Background

Dena Bank filed a petition CP 4065/2018 under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) against Jogma Laminates Industry Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP) due to default in repayment of a principal amount of ₹6,60,89,306 and interest of ₹1,58,52,153 as of 22.10.2018.

## Facts

Dena Bank sanctioned a Cash Credit Hypothecation Loan (CCH Loan) of ₹6,75,00,000 to Jogma Laminates Industry Private Limited, the Corporate Debtor, on 30.5.2015, with an interest rate of 12.55% p.a. The Corporate Debtor passed a resolution on 9.6.2015 to obtain the CCH Loan. The Corporate Debtor executed a Hypothecation Agreement on 11.6.2015, a Memorandum of Entry on 15.6.2015, and a Letter of Guarantee on 11.6.2015. The Corporate Debtor started utilizing the loan amount from 19.6.2015 but defaulted on repayments from 1.4.2017. The loan account was declared a Non-Performing Asset (NPA) on 31.8.2017. Dena Bank issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 15.11.2017, classifying the account as NPA and demanding repayment. The Corporate Debtor failed

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** Section 7 of the I&B Code requires the application to be complete with all necessary

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**Reasoning:** The Tribunal observed that the Financial Creditor had filed all necessary documents,

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**Interpretation:** Section 7 of the I&B Code mandates that an application for initiating CIRP

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**Application:** In this case, the Financial Creditor provided the sanction letter, loan account

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Dena…
- **Respondents:** Jogma Laminates…

## Timeline

- **2015-05-30 — Loan Sanc…**: Dena Bank sanctioned a Cash Credit Hypothecation Loan (CCH Loan) of ₹6,75,00,000 to the…
- **2015-06-09 — Resolution…**: The Corporate Debtor passed a…

## 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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