# In the matter of Pioneer Fabricators Private Limited C.P. No. IB-1067-(ND)-2018

> NCLT judgment dated 2019-06-12. Citation: TCN-2019-NCLT-02958. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 12 Jun 2019
- **Citation:** TCN-2019-NCLT-02958
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pioneer-fabricators-private-limited-cp-no-ib-1067-nd-2018-737276fa

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Smt. Krishna Garg and Shri B.L. Garg (Financial Creditors/Applicants) against Pioneer Fabricators Private Limited (Corporate Debtor). The applicants claim that they deposited sums of Rs. 3.00 Lacs and Rs. 2.00 Lacs, respectively, with the Corporate Debtor in 1999 at a 15% interest rate per annum. The deposit period was extended twice due to friendly terms. The Corporate Debtor made partial payments, including Rs. 43,750/- to Applicant No. 1 and Rs. 1,00,000/- to Applicant No. 2. However, the Corporate Debtor failed to repay the balance amount along with interest.

## Facts

In 1999, Smt. Krishna Garg deposited Rs. 3.00 Lacs and Shri B.L. Garg deposited Rs. 2.00 Lacs with Pioneer Fabricators Private Limited at 15% interest per annum. The deposit period was extended twice. Pioneer Fabricators made partial payments: Rs. 43,750/- to Krishna Garg and Rs. 1,00,000/- to B.L. Garg. Pioneer Fabricators failed to repay the remaining amount with interest. Krishna Garg and B.L. Garg filed a consumer complaint, which was allowed on 14.03.2018. Pioneer Fabricators claimed the deposits were loans. The total defaulted amount as of 31.03.2018 was Rs. 28,70,675/- for Krishna Garg and Rs. 9,43,366/- for B.L. Garg. Pioneer Fabricators argued the Limitation Act applied, the consumer complaint was stayed, and the applicants sought similar relief from two

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** The Supreme Court in M/s. Innoventive Industries Ltd. vs. ICICI Bank & Anr. held that

…

**Reasoning:** The Tribunal considered the Supreme Court's observation and found that the applicants had

…

**Interpretation:** The adjudicating authority must determine if a default has occurred based on

…

**Application:** The Tribunal found that the applicants had demonstrated a default, making the

…

## Parties

- **Judges:** R. VARADH…; Deepa Kr…; +1 more
- **Appellants:** Krishna…
- **Respondents:** Pioneer Fabricator…

## Timeline

- **1999-01-01 — Deposit by Ap…**: Smt. Krishna Garg and Shri B.L. Garg deposited Rs. 3.00 Lacs and Rs. 2.00 Lacs,…
- **2001-11-20 — Partial P…**: Pioneer Fabricators paid Rs. 1,00,000/-…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

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/pioneer-fabricators-private-limited-cp-no-ib-1067-nd-2018-737276fa