# In the matter of Mandhana Industries Ltd. C.P. No. 1399-I&BP-2017

> NCLT judgment dated 2017-09-29. Citation: TCN-2017-NCLT-00334. Bank of Baroda filed a Company Petition under Section 7 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 29 Sept 2017
- **Citation:** TCN-2017-NCLT-00334
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mandhana-industries-ltd-cp-no-1399-ibp-2017-1a9cf51c

## Summary

### Background

Bank of Baroda filed a Company Petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Mandhana Industries Ltd., the Corporate Debtor, for initiation of the Insolvency Resolution Process. The Corporate Debtor had availed loan facilities from the bank and defaulted on repayments. The bank sought initiation of the insolvency process due to the default.

## Facts

Bank of Baroda, the Petitioner, filed a Company Petition against Mandhana Industries Ltd., the Corporate Debtor, under Section 7 of the Insolvency & Bankruptcy Code, 2016. The Corporate Debtor had availed various loan facilities from the Bank, including a Term Loan Facility under a Common Loan Agreement dated September 8, 2008, for ₹80 crores, another Term Loan Facility on August 13, 2010, for ₹5 crores, and a Working Capital Term Loan facility on October 20, 2014. The total loan sanctioned and disbursed amounted to ₹308 crores. The Corporate Debtor defaulted on repayments, leading to the facilities becoming NPAs. As of August 31, 2017, the total default amount was ₹258,58,56,554. The Bank filed Annual Returns of the Corporate Debtor for the financial years

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## Issues and analysis

### Issue 1: Whether the details and documents provided by the Petitioner are sufficient to prove the existence …

**Ratio:** The principle is that if the petitioner provides sufficient evidence of debt and default,

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**Reasoning:** The court found that the details and documents provided by the Petitioner, including the

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**Interpretation:** This issue involves interpreting Section 7 of the Insolvency and Bankruptcy

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**Application:** The court applied this principle to the facts of the case, noting that the Bank

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** Bank of B…
- **Respondents:** Mandhana Industrie…; Raunak Sa…

## Timeline

- **2008-09-08 — Term Loan Facility…**: The Petitioner Bank entered into a Common Loan Agreement with the Corporate Debtor,…
- **2010-08-13 — Additional Term Loan…**: The Petitioner Bank provided another Term Loan Facility to the 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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