# In the matter of Venkatesh Logistics Private Limited C.P.(IB) No. 1405-KB-2018

> NCLT judgment dated 2019-08-19. Citation: TCN-2019-NCLT-01918. Oriental Bank of Commerce filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 19 Aug 2019
- **Citation:** TCN-2019-NCLT-01918
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/venkatesh-logistics-private-limited-cpib-no-1405-kb-2018-b4ba1d95

## Summary

### Background

Oriental Bank of Commerce filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Venkatesh Logistics Private Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The bank claimed that the corporate debtor had defaulted on repayment of a debt. The bank had sanctioned credit facilities to the corporate debtor, who failed to repay the principal amount and interest. The account was declared NPA on 31.12.2015. The bank issued a demand notice under Section 13(2) of the SARFAESI Act, 2002. The bank also filed Original Application No. 427 of 2017 before the DRT-III, Kolkata.

## Facts

Oriental Bank of Commerce (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Venkatesh Logistics Private Limited (Corporate Debtor). The Corporate Debtor defaulted in repaying a debt of Rs. 18,45,63,437.69. The total outstanding amount, including interest up to 29.09.2018, was Rs. 22,64,52,791.83. The Financial Creditor had sanctioned credit facilities to the Corporate Debtor, including Cash Credit, WCTL, and FITL. The Corporate Debtor's account was declared a Non-Performing Asset (NPA) on 31.12.2015. A demand notice was issued under Section 13(2) of the SARFAESI Act, 2002. The Financial Creditor also filed Original Application No. 427 of 2017 before

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for

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**Reasoning:** The court verified the records and was satisfied that the Applicant (Financial Creditor)

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**Interpretation:** The completeness of the application under Section 7 is crucial for initiating

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**Application:** The statement of Bank Account, Form 2, and written communication proved that

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## Parties

- **Judges:** Jinan…
- **Appellants:** Oriental Bank of…
- **Respondents:** Venkatesh…; Venkatesh…

## Timeline

- **2015-12-31 — Account Decla…**: The account of the Corporate Debtor was…
- **2017-01-01 — DRT Fili…**: The Financial Creditor filed Original Application No. 427 of 2017 before the DRT-III,…

## 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)

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