# 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-01724. The case involves a petition filed by Standard Chartered Bank Limited, a financial creditor,…

- **Court:** NCLT
- **Order date:** 28 Aug 2019
- **Citation:** TCN-2019-NCLT-01724
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kk-welding-limited-cpibno1523-nclt-mb-2019-bd3ac2b5

## Summary

### Background

The 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.

## Facts

Standard Chartered Bank Limited, the financial creditor, filed a petition against K.K Welding Limited, the corporate debtor, under Section 7 of the I&B Code. The petition was filed on 2019-04-11. The financial creditor claimed a total default of ₹30,55,73,479.17 as of 2019-02-28, including interest. The loan facility was extended for ₹27,50,00,000. The corporate debtor defaulted in making payments on 2018-01-31, and the petitioner declared the respondent a Non-Performing Asset on 2018-05-01. The petitioner issued a recall notice on 2018-08-02 demanding ₹28,23,41,658.77 and a notice under section 13(2) of the SARFAESI Act, 2002 on 2018-10-24 for ₹28,86,67,927.37. The corporate debtor filed an affidavit in reply but did not contend that there was no debt and default.

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor is complete and in the proper form as …

**Ratio:** The application filed by the financial creditor must be in the prescribed form and

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

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**Interpretation:** The interpretation of the Adjudicating Authority Rules requires that the

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**Application:** The court applied this principle to the facts and found that the application

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## Parties

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

## Timeline

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

## 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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