# In the matter of KAY BEE COTGIN PRIVATE LIMITED

> NCLT judgment dated 2026-03-10. Citation: TCN-2026-NCLT-00220. Punjab & Sind Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 10 Mar 2026
- **Citation:** TCN-2026-NCLT-00220
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kay-bee-cotgin-private-limited-207afcdf

## Summary

### Background

Punjab & Sind Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Kay Bee Cotgin Pvt. Ltd. for a default amount of Rs. 6,50,14,022/- as on 30.09.2024. The date of default is 27.01.2022.

## Facts

Punjab & Sind Bank, the Financial Creditor, filed an application under Section 7 of the IBC against Kay Bee Cotgin Pvt. Ltd., the Corporate Debtor.

The Corporate Debtor defaulted on a payment of Rs. 6,50,14,022/- as on 30.09.2024, with the date of default being 27.01.2022.

The Corporate Debtor had availed financial facilities from the Applicant-Financial Creditor, including Cash Credit Limit and Overdraft against Property.

The Corporate Debtor mortgaged various movable and immovable properties to secure the financial facilities.

Shri Ashok Kumar Gandhi, Amit Gandhi, Ashish Gandhi, Neera Gandhi, and Ravinder Chalana executed a Deed of Guarantee dated 25.02.2021 for repayment of the dues of the Corporate Debtor.

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is complete and meets the requirements of …

**Ratio:** Section 7(2) of the Code read

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**Reasoning:** The Adjudicating Authority examined the documents placed on record, including sanction

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**Interpretation:** The application was found to be complete in terms of Section 7(2) of the Code

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**Application:** The Adjudicating Authority was satisfied that a financial debt was disbursed by

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## Parties

- **Judges:** KHETRABASI…; KAUSHALENDRA…
- **Appellants:** Punjab & Si…; Sh. Ashwani…
- **Respondents:** Kay Bee Cotgin…
- **Other parties:** Sandeep Kumar…
- **Advocates:** Pulkit…

## Timeline

- **2022-01-27 — NPA Decla…**: The loan account of the Corporate Debtor was…
- **2022-01-28 — Demand N…**: Demand notice under section 13(2) of the SARFAESI act was issued by the Applicant…

## 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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