# In the matter of Maa Anandamoyee Himghar Pvt. Ltd. C.P. (IB) No. 127-KB-2019

> NCLT judgment dated 2019-10-03. Citation: TCN-2019-NCLT-01098. United Bank of India (UBI) filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 3 Oct 2019
- **Citation:** TCN-2019-NCLT-01098
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maa-anandamoyee-himghar-pvt-ltd-cp-ib-no-127-kb-2019-7aa5ff82

## Summary

### Background

United Bank of India (UBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against M/S. MAA ANANDAMOYEE HIMGHAR PVT. LTD., citing default on financial assistance provided. The corporate debtor disputed the claim, arguing non-compliance with RBI guidelines and lack of a board resolution at the time of sanctioning credit facilities.

## Facts

United Bank of India (UBI), the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S. MAA ANANDAMOYEE HIMGHAR PVT. LTD., the Corporate Debtor. UBI claimed that it had sanctioned a loan of Rs. 690.00 lacs to the Corporate Debtor on January 1, 2014. The Corporate Debtor acknowledged the receipt of the sanction letter via a board resolution on the same date and delivered it to UBI, acknowledging the creation of security through the deposit of title deeds. The Corporate Debtor also executed a hypothecation deed for movable plant and machinery on January 1, 2014, creating a first charge in favor of UBI. The Corporate Debtor further executed an agreement to

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency & …

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

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**Reasoning:** The court considered the documents and submissions made by the Financial Creditor,

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** In this case, the court found that the Financial Creditor had provided

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** United Bank of…
- **Respondents:** MAA ANANDAMOYEE…; M/S. MAA ANANDAMOY…

## Timeline

- **2014-01-01 — Loan Sanc…**: Rs. 690.00 lacs was…
- **2014-01-01 — Hypothecation Deed…**: The Corporate Debtor executed a Hypothecation Deed in respect of the movable Plant and…

## 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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