# In the matter of Techno Fab Manufacturing Limited CP (IB) No. 710-KB-2017

> NCLT judgment dated 2018-02-16. Citation: TCN-2018-NCLT-01808. Jaiprakash Overseas Finance Limited, the Financial Creditor, filed an application under Section…

- **Court:** NCLT
- **Order date:** 16 Feb 2018
- **Citation:** TCN-2018-NCLT-01808
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/techno-fab-manufacturing-limited-cp-ib-no-710-kb-2017-0e2e3d55

## Summary

### Background

Jaiprakash Overseas Finance Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against the Corporate Debtor, Techno Fab Manufacturing Limited. The Financial Creditor claimed that the Corporate Debtor defaulted on a payment of Rs. 5,20,219 as of 31.10.2017. The Corporate Debtor had approached the Financial Creditor for a loan for working capital and was advanced an Inter Corporate Deposit/loan of Rs. 20,00,000 bearing interest @ 12% p.a. The loan was made by RTGS from Punjab National Bank, Princep Street branch, Kolkata. The loan was initially granted for six months and renewed repeatedly on oral request of the Corporate Debtor until 5th July, 2017. The

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## Facts

Jaiprakash Overseas Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Techno Fab Manufacturing Limited (Corporate Debtor). The Corporate Debtor approached the Financial Creditor for a working capital loan, which was advanced as an Inter Corporate Deposit/loan of Rs. 20,00,000 at 12% p.a. The loan was disbursed via RTGS from Punjab National Bank on 06.07.2015. The Corporate Debtor made partial repayments on 08.07.2016, 27.09.2016, and 04.04.2017, leaving an outstanding amount of Rs. 5,20,219 as of 31.10.2017. The Corporate Debtor's repayments became irregular after July 5, 2017. The Financial Creditor proposed Mr. Hrisikesh Dasgupta as the Interim Resolution Professional. The Corporate Debtor

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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:** The Adjudicating Authority, if satisfied that a default has occurred and the application

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**Reasoning:** The Adjudicating Authority found that the application filed by the Financial Creditor was

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial

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**Application:** The Adjudicating Authority determined that the application filed by Jaiprakash

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## Parties

- **Judges:** Jinan…
- **Appellants:** Jaiprakash…
- **Respondents:** Techno Fab…
- **Advocates:** Pranay Ag…; Arush Sen…

## Timeline

- **2015-07-06 — Loan Disb…**: The Financial Creditor disbursed a loan of Rs. 20,00,000 to the Corporate Debtor via RTGS…
- **2016-07-08 — Partial Rep…**: The Corporate Debtor repaid a sum of Rs.…

## 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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