# In the matter of Latakisan Infra Private Limited CP (IB)No.1900-NCLT-MB-2019

> NCLT judgment dated 2019-11-06. Citation: TCN-2019-NCLT-00695. The case involves an application filed by Mumbai District Central Cooperative Bank Limited…

- **Court:** NCLT
- **Order date:** 6 Nov 2019
- **Citation:** TCN-2019-NCLT-00695
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/latakisan-infra-private-limited-cp-ibno1900-nclt-mb-2019-0f26a286

## Summary

### Background

The case involves an application filed by Mumbai District Central Cooperative Bank Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Latakisan Infra Private Limited, the Corporate Debtor. The bank claims a total default of ₹13,78,35,621 as of 08.05.2019. The bank had provided financial assistance to the Corporate Debtor under a Sanction Letter dated 01.08.2017, sanctioning ₹12 Crore. A Term Loan Agreement was entered on 17.10.2017. The Corporate Debtor defaulted on repayments, leading to the bank classifying the account as NPA on 01.06.2018.

## Facts

Mumbai District Central Cooperative Bank Limited (the Applicant Bank) provided financial assistance to Latakisan Infra Private Limited (the Corporate Debtor) under a Sanction Letter dated 01.08.2017, sanctioning ₹12 Crore. The Applicant and Corporate Debtor entered into a Term Loan Agreement on 17.10.2017. The Applicant also annexed a copy of the Facility Loan Agreement dated 14.08.2017 for a project term loan entered by the Applicant along with four other banks forming part of the Consortium with the Corporate Debtor for a sum of ₹44 Crore, the exposure of the Applicant Bank being ₹12 Crore. The dates of disbursements of the loan are 17.10.2017, 06.11.2017 and 07.12.2017. The Corporate Debtor agreed to repay the aggregate term loan facility of ₹44 Crore along with

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## Issues and analysis

### Issue 1: Whether the application under Section 7 …

**Ratio:** Section 7 of the I&B Code, 2016, outlines the procedure for initiating the corporate

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**Reasoning:** The court found that the application was filed in proper Form 1 and was complete with all

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**Interpretation:** Section 7 of the I&B Code requires the application to be complete and in

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**Application:** The court determined that the application filed by the Applicant Bank was

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## Parties

- **Judges:** Bhaskara Pantula…; Mr Rajesh…
- **Respondents:** Latakisan Infra…
- **Advocates:** Navid M…

## Timeline

- **2017-08-01 — Sanction…**: Applicant Bank issued a Sanction Letter to the Corporate Debtor sanctioning a sum of ₹12…
- **2017-10-17 — Term Loan Ag…**: Applicant and Corporate Debtor…

## 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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