# In the matter of Linkson Ispat & Energies Pvt. Ltd. CP No. 1273-I&BP-2017

> NCLT judgment dated 2017-10-06. Citation: TCN-2017-NCLT-00305. Punjab National Bank initiated Corporate Insolvency Resolution Process (CIRP) against Linkson…

- **Court:** NCLT
- **Order date:** 6 Oct 2017
- **Citation:** TCN-2017-NCLT-00305
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/linkson-ispat-energies-pvt-ltd-cp-no-1273-ibp-2017-588582ec

## Summary

### Background

Punjab National Bank initiated Corporate Insolvency Resolution Process (CIRP) against Linkson Ispat & Energies Pvt. Ltd. due to a default of ₹52,45,42,450/- on 30.09.2014. The bank had sanctioned fund-based and non-fund-based working capital limits to the corporate debtor, aggregating to ₹30 crores. Despite multiple notices and opportunities, the corporate debtor failed to appear, leading the NCLT to proceed ex-parte.

## Facts

Punjab National Bank (PNB) sought to initiate the Corporate Insolvency Resolution Process (CIRP) against Linkson Ispat & Energies Pvt. Ltd., referred to as the 'Corporate Debtor'. The basis for this action was the Corporate Debtor's default on 30.09.2014, amounting to ₹52,45,42,450/-. PNB had previously sanctioned working capital limits to the Corporate Debtor, totaling ₹30 crores. The Corporate Debtor acknowledged the sanction letter and accepted the facilities. PNB provided various security documents, including promissory notes and guarantee letters. The Corporate Debtor did not appear despite service of notice, leading the NCLT to proceed ex-parte. PNB also issued a notice on 11.11.2014 under Section 13(2) of the Securitization and Reconstruction of Financial

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The NCLT, upon reviewing the documents filed by PNB, found that the Corporate Debtor had

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**Interpretation:** The term 'default' under the IBC is interpreted as the non-payment of debt when

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**Application:** The Corporate Debtor's failure to repay ₹52,45,42,450/- as of 30.09.2014

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** Punjab National…
- **Respondents:** Linkson Ispat &…
- **Advocates:** Pankaj Vi…

## Timeline

- **2014-09-30 — Default…**: Corporate Debtor defaulted on…
- **2014-11-11 — Notice under SARFAESI…**: PNB issued a notice under Section…

## 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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