# In the matter of Goyal Energy And Steel Private Limited

> NCLT judgment dated 2024-10-18. Citation: TCN-2024-NCLT-00390. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 18 Oct 2024
- **Citation:** TCN-2024-NCLT-00390
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/goyal-energy-and-steel-private-limited-704030b0

## Summary

### Background

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Goyal Energy and Steel Private Limited due to an alleged default of ₹103,44,07,566.00, including interest and other loan-related expenses, calculated as of March 31, 2023. The applicant bank, as part of a consortium, had extended various credit facilities to the corporate debtor, including Cash Credit Hypothecation (CCH), Term Loans, COVID-19 Emergency Credit Facility (CEFC), and Guaranteed Emergency Credit Line (GECL) schemes. The corporate debtor failed to make timely payments, leading to the loan account being declared a Non-Performing Asset (NPA) on November 29, 2021.

## Facts

Punjab National Bank (PNB) filed an application to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Goyal Energy and Steel Private Limited. PNB, as part of a consortium, had sanctioned various credit facilities to the corporate debtor, including Cash Credit Hypothecation (CCH) limit of ₹74.50 Crores and Term Loan of ₹22 Crores, aggregating to ₹96.50 Crores, sanctioned on 24.03.2015. Subsequently, the CCH limit was enhanced to ₹94.50 Crores, and Non-Fund Based Credit Facilities amounting to ₹20 Crores were also sanctioned. The applicant bank further sanctioned ₹5 Crores towards COVID-19 Emergency Credit Facility (CEFC) and Working Capital Term Loan (WCTL) of ₹11.90 Crores. The Corporate Debtor failed to make timely payments, and the loan account was

…

## Issues and analysis

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

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

…

**Reasoning:** The NCLT examined the documents and arguments presented by both parties and found that

…

**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

…

**Application:** The NCLT found that Punjab National Bank, being a financial creditor, had the

…

## Parties

- **Judges:** Deep Chandr…; KAUSHALENDRA…
- **Appellants:** Punjab National…
- **Respondents:** GOYAL ENERGY AND…; M/S. GOYAL ENERGY…

## Timeline

- **2015-01-13 — First Tranche of Credit…**: The first tranche of credit line was…
- **2015-03-23 — Board Resolution…**: The terms and conditions of the Sanction Letter were approved by the Corporate Debtor…

## 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-division-bench-court-i-chenn/goyal-energy-and-steel-private-limited-704030b0