# In the matter of Tanisa Denim Pvt. Ltd. CP (IB) No. 378-7-NCLT-AHM-2018

> NCLT judgment dated 2018-11-15. Citation: TCN-2018-NCLT-00330. Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 15 Nov 2018
- **Citation:** TCN-2018-NCLT-00330
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tanisa-denim-pvt-ltd-cp-ib-no-378-7-nclt-ahm-2018-642fca5a

## Summary

### Background

Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code against Tanisa Denim Private Limited, claiming that the corporate debtor defaulted on a term loan and working capital facilities. The financial creditor sanctioned a term loan and working capital facilities of Rs. 900.00 lacs to the corporate debtor as per the terms and conditions of the sanction letter dated 21.03.2013. The financial assistance was secured by the creation of an equitable mortgage by memorandum of deposit of title deeds. The date of default is 1st January, 2015.

## Facts

Bank of India, the financial creditor, filed an application against Tanisa Denim Private Limited, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code. The financial creditor sanctioned term loan and working capital facilities of Rs. 900.00 lacs to the corporate debtor on 21.03.2013. The financial assistance was secured by an equitable mortgage. The total amount of debt is Rs. 13,50,66,584.23. The date of default is 1st January, 2015. The corporate debtor is unable to pay the amount due and payable. The petitioner served a copy of the petition on the Corporate Debtor/respondent. The application was filed before the Tribunal on 25th July, 2018.

## Issues and analysis

### Issue 1: Whether there is sufficient material on record to satisfy that a default had occurred in payment of …

**Ratio:** Section 5(8) of the Code

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**Reasoning:** The Financial Creditor placed on record the sanction letter given by the Bank and the

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**Interpretation:** The definition of 'Financial Debt' under Section 5(8) of the Code is

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**Application:** The ratio and reasoning are applied to the specific facts of the case to

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## Parties

- **Judges:** Manorama…
- **Appellants:** Bank of…
- **Respondents:** Tanisa Denim Pvt.…

## Timeline

- **1906-09-07 — Incorporation of Bank…**: Bank of India Ltd. is a financial…
- **2013-02-24 — Power of At…**: Mr. Kishorechand Rameshchand Kandi authorized to file application pursuant to power of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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