# In the matter of Mintri Tea Co. Ltd. CP No. 421-2017

> NCLT judgment dated 2017-09-20. Citation: TCN-2017-NCLT-00385. Punjab National Bank, as the financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 20 Sept 2017
- **Citation:** TCN-2017-NCLT-00385
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mintri-tea-co-ltd-cp-no-421-2017-3a33ef37

## Summary

### Background

Punjab National Bank, as the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against Mintri Tea Co. Ltd. due to an alleged default on a financial debt.

## Facts

Punjab National Bank, the financial creditor, 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, seeking to initiate the Insolvency Resolution Process against Mintri Tea Co. Ltd., the corporate debtor. The bank claimed that Mintri Tea Co. Ltd. was indebted to it for an amount of INR 10,37,69,840.06 as of May 31, 2017, which included interest as per the financial contract. The petitioner provided various documents to support its claim, including a Loan Agreement for Rs. 10,00,71,000/-, a Sanction Letter, Hypothecation of Assets, a Guarantee Agreement, and a demand notice for Rs. 7,62,64,905.80 issued on February 7, 2017. The total debt in

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** A petition under Section 7 of the I&B Code, 2016, can be admitted if the financial

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**Reasoning:** The Tribunal found that the inconsistency in the amount claimed was explained in detail

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**Interpretation:** The court interpreted Section 7 as not requiring a demand notice under Section

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**Application:** The alleged disparity in the debt amount and the absence of a Section 8 demand

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## Parties

- **Judges:** Vijai Prata…; Jinan…; +1 more
- **Appellants:** Punjab National…
- **Respondents:** Mintri Tea Co.…
- **Advocates:** For the Petitioner…; For the Respondent…; +2 more

## Timeline

- **February 7, 2017 — Demand Notice…**: Petitioner issued a demand…
- **May 31, 2017 — Debt Amount…**: The debt due as on this date was Rs.…

## 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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