# In the matter of Hind Syntex Limited TP 48 of 2019 {CP (IB) 305 of 2019]

> NCLT judgment dated 2022-03-04. Citation: TCN-2022-NCLT-03904. The case pertains to an application filed by Dena Bank (now Bank of Baroda after merger) under…

- **Court:** NCLT
- **Order date:** 4 Mar 2022
- **Citation:** TCN-2022-NCLT-03904
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hind-syntex-limited-tp-48-of-2019-cp-ib-305-of-2019-887794c5

## Summary

### Background

The case pertains to an application filed by Dena Bank (now Bank of Baroda after merger) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Hind Syntex Ltd. for initiating the Corporate Insolvency Resolution Process (CIRP). The application was initially dismissed for want of prosecution but was later restored. The financial creditor, Dena Bank, had sanctioned loans to Wearit Global Ltd., for which Hind Syntex Ltd. provided a corporate guarantee. The corporate debtor failed to repay the outstanding amount, leading to the bank issuing recall and legal notices.

## Facts

Dena Bank (now Bank of Baroda) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Hind Syntex Ltd. The application was initially dismissed but later restored. Dena Bank had sanctioned loans of Rs. 27,05,00,000/- and Rs. 55,25,00,000/- to Wearit Global Ltd. on 26.09.2016, for which Hind Syntex Ltd. provided a corporate guarantee. The corporate debtor failed to pay the outstanding amount of Rs. 81,78,54,736.50 as on 31.01.2019. The bank issued a loan recall notice on 06.08.2018 and a legal notice on 11.02.2019 for the repayment of Rs. 89,68,25,531.60. The corporate debtor admitted the debt vide letter dated 25.08.2018 but failed to appear and contest the application. The Adjudicating Authority passed an order to proceed ex-parte

…

## Issues and analysis

### Issue 1: Whether the application filed by Dena Bank (now Bank of Baroda) under Section 7 of the Insolvency …

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

…

**Reasoning:** The court considered the submissions of the financial creditor, the loan documents, and

…

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

…

**Application:** The court found that Dena Bank (now Bank of Baroda) was a financial creditor

…

## Parties

- **Judges:** Madan B.…; Ajai Das Me…
- **Appellants:** Dena…
- **Respondents:** Hind Synt…

## Timeline

- **2019-04-15 — Application…**: Dena Bank (now Bank of Baroda) filed an application under Section 7 of the Insolvency and…
- **2022-02-25 — Date of H…**: Hearing conducted by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 2(8) — Application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-2)

---

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/hind-syntex-limited-tp-48-of-2019-cp-ib-305-of-2019-887794c5