# In the matter of Sadhbhawana Impex Pvt. Ltd. CP (IB) No. 41-Chd-Pb-2018

> NCLT judgment dated 2018-08-21. Citation: TCN-2018-NCLT-00919. The case pertains to an application filed by Oriental Bank of Commerce, the financial creditor,…

- **Court:** NCLT
- **Order date:** 21 Aug 2018
- **Citation:** TCN-2018-NCLT-00919
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sadhbhawana-impex-pvt-ltd-cp-ib-no-41-chd-pb-2018-1f8d0a72

## Summary

### Background

The case pertains to an application filed by Oriental Bank of Commerce, the financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Sadhbhawana Impex Pvt. Ltd., the corporate debtor. The corporate debtor had defaulted in the payment of its dues, leading to its account being classified as NPA. The financial creditor initiated proceedings under the SARFAESI Act, 2002, and issued demand and possession notices. The petition was filed due to the corporate debtor's failure to repay its debts.

## Facts

Oriental Bank of Commerce, the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Sadhbhawana Impex Pvt. Ltd., the corporate debtor. The corporate debtor was incorporated on 02.01.1997 and is engaged in the business of a foundry. The financial creditor had sanctioned cash credit limits and term loans to the corporate debtor. The corporate debtor defaulted in the payment of interest and principal amount, leading to its account being classified as NPA on 31.03.2016. The financial creditor issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, on 01.04.2016, and possession notices on 09.06.2016 and 21.06.2016. The total disbursal of cash

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## Issues and analysis

### Issue 1: Whether the provisions of Section 7(1) of the Insolvency and Bankruptcy Code, 2016 are satisfied, …

**Ratio:** Section 7(1) of the IBC stipulates that a financial creditor may file an application for

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**Reasoning:** The court observed that the petitioner, Oriental Bank of Commerce, is a financial

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**Interpretation:** Section 7(1) allows a financial creditor to initiate CIRP if a default has

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**Application:** In this case, Oriental Bank of Commerce, being a financial creditor who had

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Oriental Bank of…
- **Respondents:** Sadhbhawana Impex…

## Timeline

- **1997-01-02 — Corporate Debtor…**: Sadhbhawana Impex Pvt.…
- **2016-03-31 — Account Classified as…**: The account of the corporate debtor was classified as NPA due to default in payment of…

## 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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