# In the matter of Nakshtra World Limited CP No. 3872-IBC-NCLT-MB-MAH-2018

> NCLT judgment dated 2019-01-29. Citation: TCN-2019-NCLT-05116. The case involves an application filed by ICICI Bank Limited, a financial creditor, under…

- **Court:** NCLT
- **Order date:** 29 Jan 2019
- **Citation:** TCN-2019-NCLT-05116
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nakshtra-world-limited-cp-no-3872-ibc-nclt-mb-mah-2018-6f3adf30

## Summary

### Background

The case involves an application filed by ICICI Bank Limited, a financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Nakshatra World Limited, the corporate debtor. The application seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against Nakshatra World Limited due to a default in repayment of financial debt. The corporate debtor is engaged in the business of manufacturing, trading, importing, and exporting diamond and gold jewellery. The financial creditor claims a default of ₹134,79,70,413.28 as on 31.08.2018. The corporate debtor, originally named Fantasy Diamonds Cuts Private Limited, underwent several name changes before becoming Nakshatra World Limited. The corporate debtor is a subsidiary of Gitanjali Gems

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## Facts

ICICI Bank Limited, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Nakshatra World Limited, the corporate debtor, seeking to initiate CIRP due to a default in repayment of financial debt. The corporate debtor is engaged in the business of manufacturing, trading, importing, and exporting diamond and gold jewellery. The financial creditor claims a default of ₹134,79,70,413.28 as on 31.08.2018. The corporate debtor, originally named Fantasy Diamonds Cuts Private Limited, underwent several name changes before becoming Nakshatra World Limited. The corporate debtor is a subsidiary of Gitanjali Gems Limited. The financial creditor extended credit facilities to the corporate debtor, including working capital

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has established that the loan was duly sanctioned and disbursed to …

**Ratio:** The principle is that the financial creditor must provide sufficient evidence to

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**Reasoning:** The court reviewed the various credit arrangement letters, facility agreements, and

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**Interpretation:** The court interpreted the documents as evidence of a valid financial debt that

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**Application:** The court applied this principle to the facts by examining the documents

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** ICICI Bank…
- **Respondents:** Nakshatra World…

## Timeline

- **1995-01-01 — Incorpor…**: Nakshatra World Limited was incorporated as…
- **2006-10-18 — Credit Arrangement…**: Applicant extended a Credit Arrangement Letter, sanctioning a ‘Working Capital' facility…

## 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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