# In the matter of Win-Stone Industries (India) Pvt. Ltd. CP (IB) No. 292-7-NCLT-AHM-2018

> NCLT judgment dated 2018-10-26. Citation: TCN-2018-NCLT-00480. Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 26 Oct 2018
- **Citation:** TCN-2018-NCLT-00480
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/win-stone-industries-india-pvt-ltd-cp-ib-no-292-7-nclt-ahm-2018-0a2e0bdb

## Summary

### Background

Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Win-Stone Industries (India) Private Limited, claiming default on financial debt. The applicant, Bank of India, had sanctioned various credit facilities to the respondent, Win-Stone Industries, over different dates. The respondent faced financial constraints due to market recession and failed to regularize the account, leading to its classification as Non-Performing Asset (NPA). The bank issued a statutory notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, demanding payment of outstanding dues.

## Facts

Bank of India, a financial institution, sanctioned various credit facilities to Win-Stone Industries (India) Private Limited, a company registered under the Companies Act, 1956. The credit facilities included term loans, working capital limits, and non-fund-based limits, granted on different dates starting from March 30, 2012. As of June 10, 2018, the total outstanding amount payable by Win-Stone Industries was Rs. 17,46,67,476.06. The date of default as per the Insolvency and Bankruptcy Code, 2016, was March 31, 2017. Win-Stone Industries faced financial constraints due to market recession and failed to regularize its account, leading to its classification as a Non-Performing Asset (NPA). Bank of India issued a statutory notice under Section 13(2) of the SARFAESI Act,

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** Section 7(5)(a) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The Adjudicating Authority perused the application filed by the Financial Creditor and

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**Interpretation:** Section 7 of the IBC outlines the procedure for initiating the Corporate

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**Application:** The application was deemed complete because the Financial Creditor provided all

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## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Appellants:** Bank of…
- **Respondents:** Win-Stone…

## Timeline

- **2012-03-30 — Sanction lett…**: Sanction letter dated…
- **2013-07-02 — Sanction lett…**: Sanction letter dated…

## 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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