# In the matter of Tayal Foods Limited CP (IB)No. 4686-MB-2018 in TP No. 198-CTB-2019

> NCLT judgment dated 2019-10-03. Citation: TCN-2019-NCLT-01094. The case involves an application for the initiation of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 3 Oct 2019
- **Citation:** TCN-2019-NCLT-01094
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tayal-foods-limited-cp-ibno-4686-mb-2018-in-tp-no-198-ctb-2019-0e7f2125

## Summary

### Background

The case involves an application for the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016. Union Bank of India, the financial creditor, filed the application against Tayal Foods Limited, the corporate debtor, due to the corporate debtor's inability to repay loans. The corporate debtor had availed financial facilities from the applicant since 2012, including working capital, term loans, and current accounts. The loan accounts were declared as non-performing assets on 13.03.2018.

## Facts

Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Tayal Foods Limited. Tayal Foods Limited, incorporated under the Companies Act, 1956, availed various financial facilities from Union Bank of India since 2012, including working capital, term loans, and current accounts, to set up a Rice Mill & Parboiling Unit. The Corporate Debtor executed various loan documents in favor of the applicant in July 2014, April 2015 and March 2017. Due to the Corporate Debtor's inability to repay the loans, the loan accounts were declared as non-performing assets on 13.03.2018. The outstanding amount due and payable to the applicant is Rs. 10,26,54000/- as on

…

## Issues and analysis

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

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

…

**Reasoning:** The court found that the debt and default were proved beyond reasonable doubt based on

…

**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to trigger

…

**Application:** In this case, the court applied Section 7 of the IBC to the facts presented by

…

## Parties

- **Judges:** Sucharit…; Satya Ranjan…
- **Appellants:** Union Bank of…
- **Respondents:** Tayal Foods…

## Timeline

- **2012-01-01 — Financial Facilities…**: Tayal Foods Limited availed various financial facilities from Union Bank of India since…
- **2014-07-01 — Loan Documents…**: Corporate Debtor executed various loan…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/tayal-foods-limited-cp-ibno-4686-mb-2018-in-tp-no-198-ctb-2019-0e7f2125