# In the matter of NEW HAVEN ENGINEERING CO PRIVATE LIMITED

> NCLT judgment dated 2025-04-11. Citation: TCN-2025-NCLT-00214. Karnavati Finance Limited, the Financial Creditor (FC), filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 11 Apr 2025
- **Citation:** TCN-2025-NCLT-00214
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/new-haven-engineering-co-private-limited-397edf29

## Summary

### Background

Karnavati Finance Limited, the Financial Creditor (FC), filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking initiation of Corporate Insolvency Resolution Process (CIRP) against New Haven Engineering Co Private Limited, the Corporate Debtor (CD), for alleged default of financial debt amounting to Rs.14,31,13,085/-. The Tribunal allowed the Applicant to modify the Petition and to remove the defects in terms of Proviso to Section 7(5) of IBC. The Applicant complied with the same by modifying the Date of Default as 30.04.2022 and the outstanding dues as on the date of default as Rs.8,82,93,096/-. The CD availed several loans from DCB Bank Limited between 2010 to 2016, secured against mortgaged properties.

## Facts

Karnavati Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against New Haven Engineering Co Private Limited (Corporate Debtor) for a default of Rs.14,31,13,085/-. The date of default was modified to 30.04.2022, with outstanding dues of Rs.8,82,93,096/-. The Corporate Debtor (CD) had availed loans from DCB Bank Limited between 2010 and 2016, secured against mortgaged properties. The loan facilities included Dropline Overdraft (DLOD) and Term Loan (TL) facilities. The CD defaulted on 30.04.2022, and the account was declared a Non-Performing Asset (NPA) on 29.07.2022. The Lender took symbolic possession of the security on 29.11.2022 under Section 13(4) of the SARFAESI Act, 2002. The Applicant (FC)

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the IBC is complete and …

**Ratio:** The application is complete in terms of Section 7 of the IBC if the Corporate Debtor has

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**Reasoning:** The Tribunal found that the defence raised by the CD is general in nature and lacks

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** The Tribunal considered the evidence presented by the Financial Creditor,

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Karnavati Finance…
- **Respondents:** New Haven…

## Timeline

- **2010-01-01 — Loan Ava…**: The Corporate Debtor availed several loans…
- **2016-12-29 — Sanction…**: The Lender sanctioned and disbursed a loan…

## 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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