# In the matter of Shivansh Diamond Private Limited CP (IB)-455(ND)-2019

> NCLT judgment dated 2021-03-10. Citation: TCN-2021-NCLT-02743. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 10 Mar 2021
- **Citation:** TCN-2021-NCLT-02743
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shivansh-diamond-private-limited-cp-ib-455nd-2019-9b7322e0

## Summary

### Background

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Shivansh Diamond Private Limited. The application was based on the corporate debtor's failure to repay a term loan, with a total default amount of Rs. 12,50,97,354.88. The petition was filed on 18.02.2019, within the period of limitation.

## Facts

Punjab National Bank (PNB) filed an application under Section 7 of the IBC, 2016, to initiate CIRP against Shivansh Diamond Private Limited due to a default of Rs. 12,50,97,354.88 on a term loan. The petition was filed on 18.02.2019. The Corporate Debtor was proceeded ex parte. PNB had extended cash credit facilities to the Corporate Debtor, secured by hypothecation of goods and book debts, as of 06.04.2016. PNB initiated SARFAESI proceedings by sending a notice under Section 13(2) on 06.04.2017. The Financial Creditor proposed Mr. Naresh Kumar Munjal as the Interim Resolution Professional (IRP). The court found the documents sufficient to ascertain the default.

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC, 2016, should be admitted to initiate CIRP …

**Ratio:** Section 7 of the IBC, 2016, allows a financial creditor to initiate CIRP against a

…

**Reasoning:** The court examined the documents submitted by the financial creditor, including the

…

**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to trigger

…

**Application:** The court applied Section 7 of the IBC to the facts of the case, finding that

…

## Parties

- **Judges:** Ch. Mohd Sharief…; Narender Kumar…
- **Appellants:** Punjab National…
- **Respondents:** Shivansh Diamond…; M/s. Shivansh…

## Timeline

- **2016-04-06 — Cash Credit Fa…**: Cash credit facilities were extended to the Corporate Debtor, secured by hypothecation of…
- **2017-04-06 — SARFAESI…**: The Financial Creditor initiated SARFAESI proceedings by sending a notice under Section…

## 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/shivansh-diamond-private-limited-cp-ib-455nd-2019-9b7322e0