# In the matter of K.K Welding Limited CP(IB)No.1523-NCLT-MB-2019

> NCLT judgment dated 2019-08-28. Citation: TCN-2019-NCLT-01718. This case involves a petition filed by Standard Chartered Bank Limited, a financial creditor,…

- **Court:** NCLT
- **Order date:** 28 Aug 2019
- **Citation:** TCN-2019-NCLT-01718
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kk-welding-limited-cpibno1523-nclt-mb-2019-71a3743d

## Summary

### Background

This case involves a petition filed by Standard Chartered Bank Limited, a financial creditor, against K.K Welding Limited, a corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code). The petition seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against K.K Welding Limited due to a default in loan repayment. The financial creditor claims a total default of ₹30,55,73,479.17/- including interest, as of 28.02.2019. The petitioner sanctioned a loan in accordance with the Facility Letter dated 10.07.2017 for a sum of ₹27,50,00,000/-. Hypothecation agreements were entered into on 01.09.2006 and 20.03.2012, and the charge was registered with the ROC on 27.05.2015.

## Facts

Standard Chartered Bank Limited (the Petitioner) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against K.K Welding Limited (the Respondent/Corporate Debtor) seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Petitioner claimed a total default of ₹30,55,73,479.17/- including interest as of 28.02.2019. The Petitioner had sanctioned a loan to the Respondent in accordance with a Facility Letter dated 10.07.2017 for ₹27,50,00,000/-. Hypothecation agreements were executed on 01.09.2006 and 20.03.2012, and the charge was registered with the ROC on 27.05.2015. The Respondent defaulted in making payments on 31.01.2018, leading the Petitioner to declare the Respondent's account as a Non-Performing Asset (NPA) on 01.05.2018.

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor is complete and in compliance with the …

**Ratio:** The application filed by the financial creditor must be in proper form and complete as

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**Reasoning:** The court observed that the application filed by the financial creditor was in proper

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**Interpretation:** Section 7 of the I&B Code requires the financial creditor to file an

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**Application:** In this case, the court found that the application was complete and in the

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## Parties

- **Judges:** V. P. S…; Mr Rajesh…
- **Appellants:** STANDARD CHARTERED…
- **Respondents:** K.K. Welding…

## Timeline

- **2006-09-01 — Hypothecation…**: The Petitioner and the Respondent…
- **2012-03-20 — Hypothecation…**: The Petitioner and the Respondent…

## 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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