# In the matter of Pomegranate Coaters Private Limited

> NCLT judgment dated 2023-09-15. Citation: TCN-2023-NCLT-01608. The application was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016, read with…

- **Court:** NCLT
- **Order date:** 15 Sept 2023
- **Citation:** TCN-2023-NCLT-01608
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pomegranate-coaters-private-limited-12c7b1b8

## Summary

### Background

The application was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Financial Creditor, Yatin Jindal, sought an order to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Pomegranate Coaters Private Limited. The Financial Creditor's application was based on the Corporate Debtor's failure to repay its outstanding dues. The Corporate Debtor is registered with ROC, NCT of Delhi & Haryana.

## Facts

Yatin Jindal, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Pomegranate Coaters Private Limited, the Corporate Debtor. The Corporate Debtor failed to pay interest and loan installments to the Bank of Baroda, leading to the bank declaring the Corporate Debtor as NPA and initiating SARFAESI proceedings. The Financial Creditor stood as guarantor for the credit facilities availed by the Corporate Debtor and mortgaged his property. The Bank of Baroda sold the mortgaged property for Rs. 80,28,990/-. The Corporate Debtor entered into a Loan Agreement dated 01.10.2021, converting the outstanding amount into a loan with 8% interest, but again failed to

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a 'default' as …

**Ratio:** Section 3(12) of the IBC, 2016, defines 'default' as the non-payment of debt when the

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**Reasoning:** The Corporate Debtor failed to repay the loan amount as per the Loan Agreement, and the

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**Interpretation:** The definition of 'default' under Section 3(12) is interpreted to include any

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**Application:** The Corporate Debtor's failure to repay the loan amount, despite acknowledging

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** Yatin J…
- **Respondents:** POMEGRANATE…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2021-10-01 — Loan Agre…**: The Corporate Debtor entered into 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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