# In the matter of Shri Lakshmi Cotsyn Limited Company Petition(IB) No. 142-ALD-2018

> NCLT judgment dated 2018-05-30. Citation: TCN-2018-NCLT-01354. Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 May 2018
- **Citation:** TCN-2018-NCLT-01354
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shri-lakshmi-cotsyn-limited-company-petitionib-no-142-ald-2018-b189ec78

## Summary

### Background

Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Shri Lakshmi Cotsyn Limited for initiation of the Corporate Insolvency Resolution Process (CIRP). The corporate debtor had approached Union Bank of India seeking financial assistance totaling Rs. 389.29 crore, which was sanctioned by the bank. The corporate debtor defaulted in repayment, leading to its account being declared a Non-Performing Asset (NPA) according to RBI guidelines.

## Facts

Union Bank of India (UBI) filed a Company Petition (IB) No. 142/ALD/2018 under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Shri Lakshmi Cotsyn Limited. UBI, a corporate body incorporated on 11.11.1919, claimed to be a financial creditor. M/s Shri Lakshmi Cotsyn Limited, incorporated on 31st August 1988, is the corporate debtor. The corporate debtor had approached UBI seeking financial assistance of Rs. 389.29 crore, which UBI sanctioned on 27.06.2013. The corporate debtor defaulted on repayments, leading UBI to classify the account as a Non-Performing Asset (NPA). UBI claimed a default amount of Rs. 528,90,23,899.29. The corporate debtor raised objections, including the validity of the power of attorney held by Rajesh Kumar, and non-compliance

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## Issues and analysis

### Issue 1: Whether the power of attorney holder is empowered …

**Ratio:** A special power of attorney authorizing a representative to act on behalf of a financial

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**Reasoning:** The court referred to the Hon'ble NCLAT's judgment and noted that the petitioner had

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**Interpretation:** The interpretation of the power of attorney determines whether the authorized

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**Application:** The court applied the ratio to the fact that Sri Rajesh Kumar was specifically

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## Parties

- **Judges:** V. P. S…; Saroj Ra…
- **Appellants:** Union Bank of…
- **Respondents:** M/s Shri Lakshmi…

## Timeline

- **1919-11-11 — Incorporation of Union…**: Union Bank of India is…
- **1988-08-31 — Incorporation of M/s Shri…**: M/s Shri Lakshmi Cotsyn Limited…

## Legal provisions

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

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