# In the matter of Bansal Diamonds Private Limited C.P. No. IB-987(PB)-2020

> NCLT judgment dated 2022-05-10. Citation: TCN-2022-NCLT-02790. Punjab National Bank filed an application as a Financial Creditor against M/s Bansal Diamonds…

- **Court:** NCLT
- **Order date:** 10 May 2022
- **Citation:** TCN-2022-NCLT-02790
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bansal-diamonds-private-limited-cp-no-ib-987pb-2020-157a754c

## Summary

### Background

Punjab National Bank filed an application as a Financial Creditor against M/s Bansal Diamonds Private Limited, the Corporate Debtor, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application pertains to a Corporate Guarantee executed by the Respondent/Corporate Debtor for a loan sanctioned to M/s SSK Trading Private Limited.

## Facts

Punjab National Bank, as a Financial Creditor, filed an application against M/s Bansal Diamonds Private Limited, the Corporate Debtor, seeking initiation of CIRP. The application was based on a Corporate Guarantee provided by the Corporate Debtor for a loan sanctioned to M/s SSK Trading Private Limited. The court observed that a CIRP against the same Corporate Debtor had already been initiated under Section 7 of the IBC in another case, CP (IB)-945(PB)/2020, vide order dated 10.05.2022. Therefore, the court disposed of the present application, allowing the applicant to submit their claim in the existing CIRP.

## Issues and analysis

### Issue 1: Whether the application filed by Punjab National Bank for initiation of CIRP against M/s Bansal …

**Ratio:** The principle of avoiding multiple CIRP proceedings against the same Corporate Debtor for

…

**Reasoning:** The court reasoned that since a CIRP had already been initiated against the same

…

**Interpretation:** The interpretation of the IBC emphasizes the need for a consolidated approach

…

**Application:** The court applied the ratio to the facts by disposing of the application filed

…

## Parties

- **Judges:** Ramalingam…; Sh. Avinash Kumar…
- **Appellants:** Punjab National…
- **Respondents:** M/s Bansal…

## Timeline

- **2020-09-22 — Application…**: Punjab National Bank filed an application as Petitioner/Financial Creditor against M/s…
- **2022-05-10 — Order in CP (IB)-945(PB)…**: CIRP initiated against M/s Bansal Diamonds…

## 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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