# In the matter of Shree Hari Cotex Pvt. Ltd. C.P (IB) No. 630-NCLT-AHM-2018

> NCLT judgment dated 2019-09-26. Citation: TCN-2019-NCLT-01231. The case involves an application filed by Bank of Baroda, the financial creditor, under Section…

- **Court:** NCLT
- **Order date:** 26 Sept 2019
- **Citation:** TCN-2019-NCLT-01231
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-hari-cotex-pvt-ltd-cp-ib-no-630-nclt-ahm-2018-59274e09

## Summary

### Background

The case involves an application filed by Bank of Baroda, the financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shree Hari Cotex Private Limited, the corporate debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP). The financial creditor claimed that the corporate debtor had defaulted on financial assistance sanctioned by the bank. The application was filed before the National Company Law Tribunal (NCLT), Ahmedabad Bench.

## Facts

Bank of Baroda, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shree Hari Cotex Private Limited, the corporate debtor. The corporate debtor was incorporated on October 10, 2010. The financial creditor had sanctioned cash credit hypothecation of stock-cum book debts of Rs. 1200.00 lacs and term loan (plant & machinery) of Rs. 117.50 lacs to the corporate debtor vide sanction letter dated 07.12.2012. The cash credit limit was enhanced from Rs. 1200.00 lacs to Rs. 1500.00 lacs vide sanction letter dated 16.01.2014. The applicant bank submitted that an amount of Rs. 25,92,02,567/- was outstanding against the financial assistance as of 31.10.2018, including interest and penal interest. The default

…

## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor, Bank of Baroda, under Section 7 of the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of The Insolvency

…

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

…

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

…

**Application:** The NCLT found that the application was complete, the financial creditor had

…

## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** Shree Hari Cotex…
- **Advocates:** Raju Ko…; Anip Ga…

## Timeline

- **2010-10-10 — Incorporation of…**: M/s. Shree Hari Cotex Private Limited incorporated under the provisions of the Companies…
- **2012-12-07 — Sanction of Cash Credit…**: Applicant bank sanctioned cash credit hypothecation of stock-cum book debts of Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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/shree-hari-cotex-pvt-ltd-cp-ib-no-630-nclt-ahm-2018-59274e09