# In the matter of Pro Minerals Private Limited CP (IB) No.524-KB-2017

> NCLT judgment dated 2018-05-09. Citation: TCN-2018-NCLT-01435. Bank of Baroda filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 9 May 2018
- **Citation:** TCN-2018-NCLT-01435
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pro-minerals-private-limited-cp-ib-no524-kb-2017-5e99c600

## Summary

### Background

Bank of Baroda filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Pro Minerals Private Limited, the Corporate Debtor, for defaulting on financial debt. The application was filed due to the Corporate Debtor's failure to make payments on term loans and working capital facilities, which aggregated to Rs. 156,13,53,860. The bank sought initiation of the Corporate Insolvency Resolution Process (CIRP).

## Facts

Bank of Baroda, a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Pro Minerals Private Limited, a corporate debtor. The application was filed due to the corporate debtor's default in payment of financial debt. The corporate debtor is registered under the Companies Act, 1956. Bank of Baroda had extended financial assistance to the corporate debtor, including term loans and working capital facilities, aggregating to Rs. 156,13,53,860. The total outstanding exposure as of June 30, 2017, was Rs. 161,12,57,407.96, including principal, accrued interest, and penal interest. The corporate debtor raised a preliminary objection regarding the authorization of the officer who filed the petition. The bank submitted

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## Issues and analysis

### Issue 1: Whether the officer who filed the petition on behalf of Bank of Baroda was properly authorized to …

**Ratio:** A general authorization by a Financial Creditor in favor of its officers is sufficient to

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**Reasoning:** The Adjudicating Authority relied on the NCLAT's order in Palogix Infrastructure Private

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**Interpretation:** The interpretation of authorization for initiating CIRP proceedings emphasizes

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**Application:** In this case, the Board Resolution and authorization letter authorized Zonal

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Respondents:** Pro Minerals…

## Timeline

- **2012-09-27 — Working Capital…**: Date of the working Capital Consortium Agreement entered into between Corporate Debtor…
- **2017-08-02 — Demand N…**: Date of the Demand Notice…

## 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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