# In the matter of Shree Khodal Cot-Gin Private Limited C.P. No.(IB) 572-7-NCLT-AHM-2018

> NCLT judgment dated 2020-01-01. Citation: TCN-2020-NCLT-02584. The case involves an application filed by Bank of Baroda under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 1 Jan 2020
- **Citation:** TCN-2020-NCLT-02584
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-khodal-cot-gin-private-limited-cp-noib-572-7-nclt-ahm-2018-42e4bcc7

## Summary

### Background

The case involves an application filed by Bank of Baroda under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shree Khodal Cot-Gin Private Limited, seeking initiation of the corporate insolvency resolution process (CIRP). Bank of Baroda, the financial creditor, claimed that Shree Khodal Cot-Gin Private Limited, the corporate debtor, had defaulted on its debt obligations. The bank had granted various financial credit facilities to the corporate debtor, and the debtor failed to repay the outstanding dues. During the pendency of the application, Dena Bank was merged with Bank of Baroda, and the cause title of the application was amended accordingly. The corporate debtor had been incorporated under the Companies Act, 1956, and had an authorized share

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## Facts

Bank of Baroda granted financial credit facilities to Shree Khodal Cot-Gin Private Limited. The corporate debtor defaulted on repayment, with an outstanding amount of Rs. 8,78,45,010.73 as of 29.10.2018, plus interest. The date of default was 31.03.2017. The bank holds a first and exclusive charge on the corporate debtor's hypothecated assets. The bank initiated proceedings under the SARFAESI Act and served notice u/s. 13 (2) on 28.03.2018. The corporate debtor made payments towards the outstanding loan, acknowledging the debt. The application was filed on 29th October, 2018. Dena Bank was merged with Bank of Baroda during the pendency of the application, with effect from 02.01.2019. The applicant bank submitted copies of various documents, including Form 1, affidavit,

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor is complete and fulfills the requirements …

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

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**Reasoning:** The Adjudicating Authority examined the documents and records submitted by the financial

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**Interpretation:** Section 7 of the IB Code specifies the process and requirements for a financial

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**Application:** The Adjudicating Authority found that the application was complete in all

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Bank of B…
- **Respondents:** Shree Khodal…
- **Advocates:** Dhruvkumar…; S.S. Pa…; +2 more

## Timeline

- **2014-12-27 — Disbursement of…**: Disbursement of financial credit facilities by Bank of Baroda to Shree Khodal Cot-Gin…
- **2017-03-31 — Date of D…**: The corporate debtor defaulted…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(11) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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