# In the matter of Kaneria Granito Limited C.P. (IB) No. 320-7-NCLT-AHM-2018

> NCLT judgment dated 2019-04-26. Citation: TCN-2019-NCLT-03662. The case pertains to an application filed by Bank of India under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 26 Apr 2019
- **Citation:** TCN-2019-NCLT-03662
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kaneria-granito-limited-cp-ib-no-320-7-nclt-ahm-2018-ab3b7c99

## Summary

### Background

The case pertains to an application filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s. Kaneria Granito Ltd. The applicant, Bank of India, claimed that the corporate debtor had defaulted on its financial obligations. The application was filed due to the corporate debtor's failure to repay installments as per the loan agreement, leading to the account being categorized as a Non-Performing Asset (NPA). The corporate debtor had approached the petitioner bank for restructuring of debt under the CDR system, which was restructured in 2013. Despite restructuring, the debtor continued to default.

## Facts

Bank of India, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kaneria Granito Limited, the corporate debtor. Kaneria Granito Limited is a company registered under the Companies Act, 1956, incorporated on January 21, 2000. The corporate debtor had approached the financial creditor for financial assistance/consortium finance, leading to credit facilities being sanctioned. The corporate debtor maintained various credit accounts with the petitioner-financial creditor since 2005. The respondent-corporate debtor was irregular in repaying the installments as per the terms and conditions of the loan agreement, leading to the account being categorized as

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, along with the Insolvency and

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**Reasoning:** The court perused the application and found it to be complete and in conformity with the

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**Interpretation:** Section 7 of the Code requires the Adjudicating Authority to ascertain the

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**Application:** The court found that the application filed by Bank of India was complete and

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## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Appellants:** Bank of…
- **Respondents:** Kaneria Granito…

## Timeline

- **2000-01-21 — Incorporation of…**: Kaneria Granito Ltd. was…
- **2005-02-17 — Application for…**: The corporate debtor applied for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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