# In the matter of KKK Cotspin Pvt. Ltd. CP (IB) No. 127-Chd-Pb-2017

> NCLT judgment dated 2018-01-25. Citation: TCN-2018-NCLT-01893. UCO Bank, a financial creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 25 Jan 2018
- **Citation:** TCN-2018-NCLT-01893
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kkk-cotspin-pvt-ltd-cp-ib-no-127-chd-pb-2017-5df0b5f1

## Summary

### Background

UCO Bank, a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the insolvency resolution process against KKK Cotspin Pvt. Ltd., the corporate debtor. The corporate debtor had been availing loan facilities from UCO Bank since 2008. The bank's petition was based on the corporate debtor's default in repaying the loan amount. The corporate debtor opposed the petition, citing issues with the bank's actions and the status of mortgaged properties.

## Facts

UCO Bank, the petitioner, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the insolvency resolution process against KKK Cotspin Pvt. Ltd., the respondent. The respondent-company was incorporated on 18.04.2006. The corporate debtor had been availing loan facilities from the petitioner-bank since 2008, with the cash credit hypothecation limit initially sanctioned at ₹172 lacs. The limit was increased to ₹2.50 crores on 24.03.2008 and further enhanced over time. The latest sanction was granted on 09.10.2015, including CC hypothecation of ₹2600 lacs, ILC/FLC DA/DP of ₹135 lacs, BG (Bank Guarantee) of ₹15 lacs, and Term Loan of ₹670 lacs. The amount in default as on 31.08.2017 was stated to be ₹36,62,48,202.41. The corporate debtor

…

## Issues and analysis

### Issue 1: Whether the petition filed by the financial creditor is complete and meets the requirements of …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, along with Rule 4 of the

…

**Reasoning:** The court examined the documents submitted by the financial creditor, including the

…

**Interpretation:** The court interpreted Section 7 of the IBC and Rule 4 of the Rules to mean that

…

**Application:** The court applied the provisions of Section 7 and Rule 4 to the facts of the

…

## Parties

- **Judges:** R.P.Nag…
- **Appellants:** UCO B…
- **Respondents:** KKK Cotspin Pvt.…

## Timeline

- **2006-04-18 — Incorporation of…**: The respondent-company, KKK…
- **2008-01-01 — Loan Facilitie…**: The respondent-corporate debtor had been availing loan from the petitioner-bank since the…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/kkk-cotspin-pvt-ltd-cp-ib-no-127-chd-pb-2017-5df0b5f1