# In the matter of Joshi Deodhar Engineering Company Limited C.P. (IB) No.4735-NCLT-MB-2018

> NCLT judgment dated 2019-10-15. Citation: TCN-2019-NCLT-00991. The case involves an application filed by TJSB Sahakari Bank Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 15 Oct 2019
- **Citation:** TCN-2019-NCLT-00991
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/joshi-deodhar-engineering-company-limited-cp-ib-no4735-nclt-mb-2018-a306e482

## Summary

### Background

The case involves an application filed by TJSB Sahakari Bank Limited, the Financial Creditor, against Joshi Deodhar Engineering Company Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a total default of ₹1,39,41,586.37 along with interest as on 30.09.2018. The Corporate Debtor had availed credit facilities from the Applicant, which were classified as Non-Performing Asset (NPA) on 31.07.2014. The Corporate Debtor contended that the application was barred by limitation.

## Facts

TJSB Sahakari Bank Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Joshi Deodhar Engineering Company Limited, the Corporate Debtor, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a total default of ₹1,39,41,586.37 along with interest as on 30.09.2018. The Corporate Debtor had been sanctioned credit facilities to the tune of ₹1,12,00,000/- by the Applicant. These facilities included Cash Credit, Term Loan-I, and Term Loan-II. The credit facilities were secured by Mortgage, Promissory Note, Deed of Hypothecation, Letter of Lien, Set Off, and Deed of Guarantee. The Corporate Debtor defaulted in repayment of the credit facilities, and its account

…

## Issues and analysis

### Issue 1: Whether the application 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

…

**Reasoning:** The Tribunal considered the submissions of the Applicant and perused the records. It

…

**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the CIRP

…

**Application:** The Tribunal found that the application met the requirements of Section 7 and

…

## Parties

- **Judges:** Mr V. P.…; Mr Rajesh…
- **Appellants:** TJSB Sahakari…
- **Respondents:** Joshi Deodhar…

## Timeline

- **2014-07-31 — Account Classified as…**: The account of the Corporate Debtor was…
- **2018-09-30 — Default…**: The Financial Creditor claimed a total default of ₹1,39,41,586.37 along with interest as…

## 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)

---

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/joshi-deodhar-engineering-company-limited-cp-ib-no4735-nclt-mb-2018-a306e482