# In the matter of Sheth Metal Pvt. Ltd. CP (IB) -153-I&BP-MB-2018

> NCLT judgment dated 2018-06-06. Citation: TCN-2018-NCLT-01322. Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 6 Jun 2018
- **Citation:** TCN-2018-NCLT-01322
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sheth-metal-pvt-ltd-cp-ib-153-ibp-mb-2018-4cec7f85

## Summary

### Background

Punjab National Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Sheth Metal Private Limited, the Corporate Debtor. The bank claimed that the Corporate Debtor had defaulted on repayment of various credit facilities from 30.11.2017 onwards, amounting to ₹33,85,20,047.32/-. The bank provided sanction letters and documents related to the loan facilities and security.

## Facts

Punjab National Bank (PNB) sought to initiate Corporate Insolvency Resolution Process (CIRP) against Sheth Metal Private Limited (Corporate Debtor) due to default in repayment of credit facilities. The default commenced on 30.11.2017, with an outstanding amount of ₹33,85,20,047.32/-. PNB submitted sanction letters dated 13.6.2008, 16.11.2009, 29.11.2011 and 29.6.2012, along with security documents. The credit facilities were restructured by the Corporate Debtor, as indicated in the sanction letter dated 29.6.2012. The Corporate Debtor defaulted in repaying the loan availed. The Adjudicating Authority admitted the petition.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Sheth Metal Private Limited, defaulted in repaying the loan amount to …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Adjudicating Authority, upon perusal of the documents filed by the Creditor, found

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

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**Application:** In this case, Punjab National Bank provided sufficient evidence to demonstrate

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## Parties

- **Judges:** Mr.BhaskaraPantula…; Mr.V.Nallasenapath…
- **Appellants:** Punjab National…
- **Respondents:** Sheth Metal…; Sheth Metal Pvt.…
- **Advocates:** Priyanka…; IndrajeetH…; +1 more

## Timeline

- **2017-11-30 — Default Comme…**: Sheth Metal Private Limited committed default on 30.11.2017 onwards in repayment of…
- **2018-03-21 — First Heari…**: The Petition was listed for hearing on 21.3.2018 wherein there was no representation by…

## 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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