# In the matter of Nava Bharat Press (Bhopal) Private Limited CP (IB) 1598-MB-C-II-2019

> NCLT judgment dated 2019-12-16. Citation: TCN-2019-NCLT-00155. The case originates from a petition filed by Bank of Maharashtra under Section 7 of the…

- **Court:** NCLT
- **Order date:** 16 Dec 2019
- **Citation:** TCN-2019-NCLT-00155
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nava-bharat-press-bhopal-private-limited-cp-ib-1598-mb-c-ii-2019-9f78fe5e

## Summary

### Background

The case originates from a petition filed by Bank of Maharashtra under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Nava Bharat Press (Bhopal) Private Limited, the Corporate Debtor. The Financial Creditor claims default on a financial debt, including dues as per a DRT decree, interest, and other expenses, totaling Rs. 83,40,90,183.00 as of 30.09.2018. The Corporate Debtor is a private company incorporated on 27.12.1982. The Financial Creditor sanctioned a first term loan facility on 22.10.2004 and further financial credit on 23.03.2004. The Corporate Debtor defaulted on repayment, leading to the loan account being declared NPA on 31.03.2004. The Financial Creditor initiated

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## Facts

Bank of Maharashtra, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Nava Bharat Press (Bhopal) Private Limited, the Corporate Debtor. The Financial Creditor claimed a total amount of Rs. 83,40,90,183.00 as of 30.09.2018, comprising dues as per a DRT decree dated 05.08.2011 (Rs. 24,93,08,874/-), interest from 28.07.2009 to 30.09.2018 (Rs. 58,43,50,816/-), and other expenses from 05.08.2011 to 31.05.2018 (Rs. 4,30,494/-), along with interest at 14.25%. The date of default was stated as 31.03.2004. The Financial Creditor had sanctioned a first term loan facility of Rs. 6,63,00,000/- on 22.10.2004 and further financial credit of Rs. 14.17 Crores on

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on a financial debt due and payable to the Financial …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The Adjudicating Authority considered the DRT decree dated 05.08.2011 and the Recovery

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**Interpretation:** The interpretation of 'financial debt' and 'default' under the IBC is crucial.

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**Application:** In this case, the DRT decree and Recovery Certificate served as evidence of the

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## Parties

- **Judges:** M.K. Sh…; Chandra Bha…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** Nava Bharat Press…

## Timeline

- **1982-12-27 — Incorporation of…**: Nava Bharat Press (Bhopal) Private Limited…
- **2004-10-22 — Sanction of First Term…**: Financial Creditor sanctioned First Term…

## 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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