# In the matter of Mohan Gems & Jewels Pvt. Ltd. C.P. No.IB-590(PB)-2018

> NCLT judgment dated 2018-09-25. Citation: TCN-2018-NCLT-00723. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Sept 2018
- **Citation:** TCN-2018-NCLT-00723
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mohan-gems-jewels-pvt-ltd-cp-noib-590pb-2018-d9980ef3

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Invent Assets Securitization & Reconstruction Pvt. Ltd. (the 'financial creditor') against Mohan Gems & Jewels Pvt Ltd (the 'corporate debtor') to initiate Corporate Insolvency Resolution Process (CIRP). The financial creditor claims that the corporate debtor defaulted on a financial debt of Rs. 75,62,03,501.01. The corporate debtor was incorporated on 14.02.2006. The account of the corporate debtor was declared as Non-Performing Asset (NPA) on 29.11.2015. The erstwhile State Bank of Patiala (now merged with the State Bank of India) assigned the debt to the financial creditor on 08.02.2017.

## Facts

Invent Assets Securitization & Reconstruction Pvt. Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Mohan Gems & Jewels Pvt Ltd, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petitioner, claiming to be a financial creditor, stated that the corporate debtor defaulted on a financial debt amounting to Rs. 75,62,03,501.01. Mohan Gems & Jewels Pvt Ltd was incorporated on 14.02.2006. The corporate debtor's account was declared a Non-Performing Asset (NPA) on 29.11.2015. The erstwhile State Bank of Patiala (now merged with the State Bank of India) assigned the debt to the petitioner on 08.02.2017. The petitioner proposed the name of Mr. Debashis Nanda as the Insolvency Professional. The

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## Issues and analysis

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

**Ratio:** Section 7 of the IBC and Rule 4(1) of the Insolvency and Bankruptcy (Application to

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**Reasoning:** The Adjudicating Authority considered the submissions of the learned counsel for the

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**Interpretation:** Section 7(2) requires the financial creditor to make an application in the

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**Application:** The Adjudicating Authority found that the application was complete, a default

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## Parties

- **Judges:** M. M. K…; S. К. МОН…
- **Appellants:** Invent Assets…
- **Respondents:** Mohan Gems &…

## Timeline

- **2006-02-14 — Incorporation of…**: Mohan Gems & Jewels Pvt…
- **2015-11-29 — Declaration…**: The account of the Corporate Debtor was…

## 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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