# In the matter of New Tech Imports Private Limited

> NCLT judgment dated 2025-04-17. Citation: TCN-2025-NCLT-00207. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 17 Apr 2025
- **Citation:** TCN-2025-NCLT-00207
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/new-tech-imports-private-limited-c6c7a32a

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Encore Asset Reconstruction Company Private Limited (Financial Creditor) against M/s New Tech Imports Private Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed default on a financial debt. The Corporate Debtor argued that the date of NPA classification should not be considered the date of default and cited an order from the Debt Recovery Tribunal (DRT) setting aside the NPA classification. The Adjudicating Authority considered whether the NPA classification could be considered a default under the IBC, whether a partial default is sufficient to trigger insolvency proceedings, and the impact of the

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## Facts

The Financial Creditor, Encore Asset Reconstruction Company Private Limited, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s New Tech Imports Private Limited. The Financial Creditor claimed that the Corporate Debtor had defaulted on a financial debt. The Corporate Debtor was incorporated on 19.04.1995. The amount of default was Rs. 28,16,38,921/- as on 31.08.2022. The Financial Creditor had granted financial facilities to the Corporate Debtor vide Sanction Letter dated 17.11.2014, which was modified/revived multiple times. The Corporate Debtor acknowledged the outstanding debt of Rs. 21,31,27,507/- as on 13.07.2020. The Corporate Debtor started

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## Issues and analysis

### Issue 1: Whether the classification of the account of the Corporate Debtor as a Non-Performing Asset (NPA) …

**Ratio:** The mere classification of an account as NPA does not ipso facto translate into a

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**Reasoning:** The Adjudicating Authority relied on the judgments of the Hon'ble National Company Law

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**Interpretation:** The interpretation is that while NPA classification may be indicative of

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**Application:** In the present case, the Financial Creditor has adduced sufficient documentary

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** Encore Asset…
- **Respondents:** M/s New Tech…

## Timeline

- **1995-04-19 — Incorporation of…**: M/s New Tech Imports Private Limited was…
- **2014-11-17 — Sanction…**: FC granted financial facilities to the CD vide Sanction Letter dated 17.11.2014 which was…

## 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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