# In the matter of Swarnsparsh Gems & Jewellery Limited C.P. No.1118-I&BP-2019

> NCLT judgment dated 2019-10-22. Citation: TCN-2019-NCLT-00853. Bank of India filed a Company Petition against Suwarnsparsh Gems and Jewellery Ltd. under…

- **Court:** NCLT
- **Order date:** 22 Oct 2019
- **Citation:** TCN-2019-NCLT-00853
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/swarnsparsh-gems-jewellery-limited-cp-no1118-ibp-2019-aa17a032

## Summary

### Background

Bank of India filed a Company Petition against Suwarnsparsh Gems and Jewellery Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, alleging a default in payment of Rs. 17,18,85,788.17. The petition seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

## Facts

Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Suwarnsparsh Gems and Jewellery Ltd., claiming a default of Rs. 17,18,85,788.17. The bank provided credit facilities to the Corporate Debtor, including cash credit and term loans, totaling Rs. 14.22 Crores. The Corporate Debtor failed to repay the outstanding dues, leading to the account being classified as a Non-Performing Asset (NPA) on 30.06.2017. The bank issued a notice under Section 13(2) of the SARFAESI Act, 2002, demanding Rs. 16,35,78,781/- as of 30.06.2017. The Corporate Debtor's counsel withdrew representation due to a lack of cooperation. The Adjudicating Authority admitted the petition, finding that the Corporate Debtor had defaulted in repaying the loans.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in repaying the loans availed from the Petitioner, Bank of …

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

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**Reasoning:** The Adjudicating Authority, upon reviewing the documents submitted by the Creditor, found

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

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**Application:** In this case, the Bank of India provided sufficient evidence to demonstrate

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Appellants:** Bank of…
- **Respondents:** Suwarnsparsh Gems…; Bruno Cas…

## Timeline

- **2016-08-05 — Sanction…**: One of the sanction letters…
- **2013-07-01 — Sanction…**: One of the sanction letters…

## Legal provisions

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

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