# In the matter of Max Flex & Imaging Systems Ltd. IA No. 876-2020 in C.P. (IB) No. 4302-IB-2018

> NCLT judgment dated 2021-09-08. Citation: TCN-2021-NCLT-01162. The case involves a petition filed by Bank of Baroda (formerly Dena Bank) under Section 7 of…

- **Court:** NCLT
- **Order date:** 8 Sept 2021
- **Citation:** TCN-2021-NCLT-01162
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/max-flex-imaging-systems-ltd-ia-no-876-2020-in-cp-ib-no-4302-ib-2018-65e290a2

## Summary

### Background

The case involves a petition filed by Bank of Baroda (formerly Dena Bank) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Max Flex & Imaging Systems Ltd, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP) due to a default of Rs. 32,67,46,597.31. The Corporate Debtor's account was declared a Non-Performing Asset (NPA) on 08.01.2015. The application was initially admitted but later an appeal was filed. The present application was then taken up for further hearing.

## Facts

Bank of Baroda (formerly Dena Bank) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Max Flex & Imaging Systems Ltd. The Corporate Debtor's account was declared NPA on 08.01.2015. The Financial Creditor claimed a total default of Rs. 32,67,46,597.31. The Corporate Debtor argued the application was barred by limitation. The Financial Creditor had sanctioned credit facilities to the Corporate Debtor, including cash credit hypothecation and letter of credit, totaling Rs. 20.00 crore, disbursed between 2013 and 2014. The loan was secured by a mortgage, with various supplemental indentures executed in 2014. The Corporate Debtor also hypothecated goods, book debts, and other movable assets. The Financial Creditor issued a recall

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is barred by …

**Ratio:** The Hon'ble Supreme Court in Dena Bank (now Bank of Baroda) vs. C Shivakumar Reddy and

…

**Reasoning:** The Tribunal considered the Supreme Court's ruling and the fact that the Corporate Debtor

…

**Interpretation:** Section 7 of the IBC must be interpreted in light of the principles of

…

**Application:** In this case, the Tribunal found that the recall notice issued by the Financial

…

## Parties

- **Judges:** Bhaskara Pantula…; Narender Kumar…
- **Appellants:** Hitesh R. J…
- **Respondents:** Max Flex &…; Max Flex &…
- **Advocates:** Jishnu Cho…; Ankur S…; +2 more

## Timeline

- **2015-01-08 — Account Decla…**: The account of the Corporate Debtor was…
- **2016-07-11 — Recall Notice…**: The Financial Creditor issued a recall notice under Section 13(2) of the SARFAESI Act,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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/max-flex-imaging-systems-ltd-ia-no-876-2020-in-cp-ib-no-4302-ib-2018-65e290a2