# In the matter of Plutus Infraventures Pvt. Ltd. CP (IB) No. 176-CTB-2019

> NCLT judgment dated 2022-03-15. Citation: TCN-2022-NCLT-03737. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 15 Mar 2022
- **Citation:** TCN-2022-NCLT-03737
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/plutus-infraventures-pvt-ltd-cp-ib-no-176-ctb-2019-a4b98d80

## Summary

### Background

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Plutus Infraventures Pvt. Ltd. due to a default on a loan amounting to ₹12,79,79,316. The Financial Creditor had sanctioned various credit facilities to the Corporate Debtor, including cash credit and letter of credit limits. The Corporate Debtor had also created equitable mortgages over immovable properties to secure the credit facilities.

## Facts

Punjab National Bank (PNB) extended credit facilities to Plutus Infraventures Pvt. Ltd., including cash credit and letter of credit limits. The total outstanding amount claimed by PNB is ₹12,79,79,316. To secure these facilities, Plutus Infraventures created equitable mortgages on immovable properties. The Corporate Debtor defaulted on repayments, leading PNB to classify the account as a Non-Performing Asset (NPA) on 31.03.2018. PNB issued a legal notice on 27.04.2018, and a notice under Section 13(2) of the SARFAESI Act on 07.05.2018. PNB also approached the Debt Recovery Tribunal (DRT), Jabalpur, for recovery. The Corporate Debtor confirmed the outstanding balance in a Balance and Security Confirmation Letter dated 12.05.2018. The Corporate Debtor was served notice

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

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

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**Reasoning:** The court observed that the requisites of an application under Section 7 of the IBC are

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

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

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Punjab National…
- **Respondents:** PLUTUS INFRAVENTUR…
- **Advocates:** Manoj M…

## Timeline

- **2015-10-09 — Execution of D…**: Corporate Debtor executed documents in favor…
- **2016-01-28 — Sanction…**: Sanction letter issued to…

## 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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