# In the matter of SIlver Proteins Private Limited C.P.(I.B) No. 554-7-NCLT-AHM-2018

> NCLT judgment dated 2020-06-29. Citation: TCN-2020-NCLT-01100. The case pertains to an application filed by Central Bank of India, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 29 Jun 2020
- **Citation:** TCN-2020-NCLT-01100
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/silver-proteins-private-limited-cpib-no-554-7-nclt-ahm-2018-680c78bc

## Summary

### Background

The case pertains to an application filed by Central Bank of India, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Silver Proteins Private Limited, the Corporate Debtor, due to default in repayment of debt. The bank claimed a default amount of Rs. 33,97,30,993/- as of 01.07.2015, with the account being classified as NPA on the same date. The Corporate Debtor contested the claim, alleging incorrect application of interest and disputing the authority of the person filing the petition.

## Facts

Central Bank of India, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Silver Proteins Private Limited, the Corporate Debtor. The Corporate Debtor's account was classified as NPA on 01.07.2015, with a claimed default amount of Rs. 33,97,30,993/- as of that date. The Financial Creditor submitted various documents, including loan applications, sanction letters, demand promissory notes, and statements of accounts, to support its claim. The Corporate Debtor contested the claim, alleging incorrect application of interest and disputing the authority of the person filing the petition. The Corporate Debtor also argued that the petition was barred by limitation. Mahendra Oil Cake Industries Ltd. also

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The Adjudicating Authority examined the documents placed on record and was satisfied that

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**Interpretation:** The provision allows for initiation of CIRP upon default, ensuring timely

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**Application:** The Authority found that the Corporate Debtor defaulted, thus the application

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Central Bank of…
- **Respondents:** Silver Protiens…
- **Advocates:** Abhijit…; Khyati Pu…

## Timeline

- **2015-07-01 — Account classified as…**: The account of Silver Proteins Private Limited was classified as NPA, and the date of…
- **2015-07-15 — Notice under SARFAESI…**: A notice under Section 13(2) of the SARFAESI…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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