# In the matter of Pawan Impex Pvt. Ltd. (IB)-1396(PB)-2019

> NCLT judgment dated 2019-07-25. Citation: TCN-2019-NCLT-02282. Axis Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking…

- **Court:** NCLT
- **Order date:** 25 Jul 2019
- **Citation:** TCN-2019-NCLT-02282
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pawan-impex-pvt-ltd-ib-1396pb-2019-1ff50c3c

## Summary

### Background

Axis Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Pawan Impex Pvt. Ltd., the corporate debtor. The petition was filed due to the corporate debtor's default in repayment of a financial debt. The total amount due to the bank was Rs. 189,50,19,724.63 as of April 30, 2019. The corporate debtor admitted to being in default and not having substantive grounds to contest the non-payment.

## Facts

Axis Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Pawan Impex Pvt. Ltd. The petition was based on the corporate debtor's default in repaying a financial debt. The outstanding amount was Rs. 189,50,19,724.63 as of April 30, 2019. The corporate debtor admitted to being in default and stated they had no substantive grounds to contest the non-payment of the debt. The petition was supported by statements of accounts and other security documents. The Adjudicating Authority found that the requirements of Section 7(2) and 7(5) of the IBC were met. The financial creditor disbursed money to the corporate debtor, but the amount was not repaid. The corporate debtor

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## Issues and analysis

### Issue 1: Whether the requirements of Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating …

**Ratio:** Section 7 of the IBC outlines the procedure for initiating CIRP by a financial creditor.

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**Reasoning:** The Adjudicating Authority found that Axis Bank had provided sufficient evidence to

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**Interpretation:** Section 7 is interpreted to mean that if a financial creditor can prove the

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**Application:** In this case, Axis Bank successfully demonstrated the existence of a financial

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Axis Ban…
- **Respondents:** Pawan Impex Pvt.…
- **Advocates:** Aditya Ma…; Anandh Venkatarama…

## Timeline

- **2019-04-30 — Outstandin…**: The total amount due to Axis…
- **2019-04-29 — Acknowledgemen…**: Letter of acknowledgement of debt…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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