# In the matter of Provogue Personal Care Private Limited CP 983 (IB)-MB-2019

> NCLT judgment dated 2020-09-26. Citation: TCN-2020-NCLT-00526. The case pertains to an application filed by Bank of India, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 26 Sept 2020
- **Citation:** TCN-2020-NCLT-00526
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/provogue-personal-care-private-limited-cp-983-ib-mb-2019-646049f2

## Summary

### Background

The case pertains to an application filed by Bank of India, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code), to initiate Corporate Insolvency Resolution Process (CIRP) against Provogue Personal Care Private Limited, the Corporate Debtor. The Corporate Debtor defaulted on repayment of credit facilities sanctioned by the Applicant. The application was admitted by the NCLT.

## Facts

Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Provogue Personal Care Private Limited, the Corporate Debtor. The Corporate Debtor had been sanctioned credit facilities by the Applicant in 2013. The Corporate Debtor defaulted on repayment of ₹5,21,76,808.29. The date of commencement of default was 13.08.2015. The account of the Corporate Debtor was classified as NPA on 30.04.2018. A recall notice was sent on 29.10.2018. The Applicant submitted a Certificate of Registration of Charge dated 30.11.2013. The Corporate Debtor proposed a one-time settlement, which was not finalized. The application was filed in proper form and was

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the I&B Code, 2016, …

**Ratio:** Section 7 of the I&B Code allows a financial creditor to initiate CIRP against a

…

**Reasoning:** The NCLT considered the documents submitted by the Financial Creditor, including the

…

**Interpretation:** Section 7 of the I&B Code provides the mechanism for a financial creditor

…

**Application:** The NCLT applied the provisions of Section 7 of the I&B Code to the facts

…

## Parties

- **Judges:** Mr V. P.…; Mr Rajesh…
- **Appellants:** Bank of…
- **Respondents:** Provogue Personal…

## Timeline

- **2013-01-01 — Sanction of Credit…**: The Applicant had sanctioned credit facilities to the extent of five crores in the year…
- **2013-11-01 — Execution of Credit…**: Various documents about the said…

## 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)

---

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/provogue-personal-care-private-limited-cp-983-ib-mb-2019-646049f2