# In the matter of JVR Forgings Limited CP (IB) No. 36-Chd-Pb-2018

> NCLT judgment dated 2018-09-18. Citation: TCN-2018-NCLT-00742. Allahabad Bank, a financial creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 18 Sept 2018
- **Citation:** TCN-2018-NCLT-00742
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jvr-forgings-limited-cp-ib-no-36-chd-pb-2018-499a9f81

## Summary

### Background

Allahabad Bank, a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against M/s JVR Forgings Limited, the corporate debtor. The petition was filed before the National Company Law Tribunal (NCLT), Chandigarh Bench. The petition sought initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor.

## Facts

Allahabad Bank, a financial creditor, initiated proceedings against M/s JVR Forgings Limited, the corporate debtor, by filing a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was filed before the National Company Law Tribunal (NCLT), Chandigarh Bench. The NCLT admitted the petition on 2018-09-12 and declared a moratorium under Section 14(1) of the Code. Mr. Hemanshu Jetley was appointed as the Interim Resolution Professional (IRP). The order specifies the powers and duties of the IRP, including taking control of the corporate debtor's assets, managing its affairs, and constituting a committee of creditors. The corporate debtor's directors and management are required to cooperate with the IRP. The order also directs the IRP to make a

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## Issues and analysis

### Issue 1: Whether the petition 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

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**Reasoning:** The NCLT considered the petition filed by Allahabad Bank and found it to be in order. The

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

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**Application:** The NCLT applied Section 7 to the facts presented by Allahabad Bank,

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Allahabad…
- **Respondents:** M/s JVR Forgings…

## Timeline

- **2018-09-12 — Admission of Petition…**: The petition filed by the Financial Creditor…
- **2018-09-18 — Order Del…**: The order was delivered on this date,…

## 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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