# In the matter of Nitin Fire Protection Industries Limited CP (IB) - 1890-I&BP-MB-2018

> NCLT judgment dated 2018-10-22. Citation: TCN-2018-NCLT-00532. Dena Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking…

- **Court:** NCLT
- **Order date:** 22 Oct 2018
- **Citation:** TCN-2018-NCLT-00532
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nitin-fire-protection-industries-limited-cp-ib-1890-ibp-mb-2018-0bd35d66

## Summary

### Background

Dena Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) against Nitin Fire Protection Industries Limited, the Corporate Debtor. The petition was based on the Corporate Debtor's alleged default in repayment of facilities granted by Dena Bank. The bank claimed a default from 03.04.2017 onwards.

## Facts

Dena Bank, the Petitioner, sought to initiate the Corporate Insolvency Resolution Process (CIRP) against Nitin Fire Protection Industries Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The basis for the petition was the Corporate Debtor's alleged default in repaying facilities granted by Dena Bank. The default was claimed to have occurred from 03.04.2017 onwards. Dena Bank had extended various credit facilities to the Corporate Debtor, including cash credit of Rs. 15,00,00,000/-, letter of credit of Rs. 26,00,00,000/-, and bank guarantee of Rs. 10,00,00,000/-, totaling Rs. 51,00,00,000/-. The bank enclosed a sanction letter dated 25.03.2013, security documents, and a statement of account to support its claim. The Corporate

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in repayment of the facilities granted by the Petitioner, …

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

…

**Reasoning:** The Adjudicating Authority, after reviewing the documents submitted by Dena Bank, found

…

**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial creditor

…

**Application:** In this case, Dena Bank provided the sanction letter, security documents, and

…

## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Dena…
- **Respondents:** Nitin Fire…

## Timeline

- **2013-03-25 — Sanction Lett…**: Dena Bank issued a sanction letter to…
- **2013-03-25 — Registration of…**: Certificate of Registration of…

## 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/nitin-fire-protection-industries-limited-cp-ib-1890-ibp-mb-2018-0bd35d66