# In the matter of Shivkala Developers Pvt. Ltd. (IB)-525-ND-2017

> NCLT judgment dated 2018-02-12. Citation: TCN-2018-NCLT-01846. The case involves a petition filed by M/s Noble Cooperative Bank Ltd. under Section 7 of the…

- **Court:** NCLT
- **Order date:** 12 Feb 2018
- **Citation:** TCN-2018-NCLT-01846
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shivkala-developers-pvt-ltd-ib-525-nd-2017-9713761d

## Summary

### Background

The case involves a petition filed by M/s Noble Cooperative Bank Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Shivkala Developers Pvt. Ltd., the Corporate Debtor, due to unpaid financial debt. The petitioner had granted an overdraft facility of Rs. 30 lakhs to the respondent, which was later reduced to Rs. 25 lakhs. The Corporate Debtor defaulted on the overdraft account, and the Financial Creditor claimed an amount of Rs. 30,71,271.50 was due. The Corporate Debtor failed to respond to the notice of default.

## Facts

M/s Noble Cooperative Bank Ltd. (Petitioner) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against M/s Shivkala Developers Pvt. Ltd. (Respondent/Corporate Debtor) due to unpaid financial debt. The Petitioner had granted an overdraft facility of Rs. 30 lakhs to the Respondent, which was subsequently reduced to Rs. 25 lakhs. The Respondent defaulted on the overdraft account. The Financial Creditor claimed that Rs. 30,71,271.50 was due. The Corporate Debtor failed to respond to the default notice dated 13.11.2017. The loan facility was initially availed in 2009 and extended periodically. The account was last operated on 11.10.2017 and then declared an NPA. Steps were taken to serve the Respondent, but they did not appear, leading to an ex

…

## Issues and analysis

### Issue 1: Whether the Petitioner has been able to satisfy the adjudicating authority that a financial debt is …

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

…

**Reasoning:** The court reasoned that the Petitioner presented sufficient evidence to demonstrate the

…

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

…

**Application:** In this case, the Petitioner provided evidence of the overdraft facility, the

…

## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** M/s Noble…
- **Respondents:** M/s Shivkala…

## Timeline

- **2009-01-01 — Loan Facility…**: The loan facility was first…
- **2017-10-11 — Account Last…**: The Corporate Debtor's account was last operated on this date, after which it was…

## 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/shivkala-developers-pvt-ltd-ib-525-nd-2017-9713761d