# In the matter of Pomegranate Coaters Private Limited

> NCLT judgment dated 2023-09-15. Citation: TCN-2023-NCLT-01585. 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-01585
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pomegranate-coaters-private-limited-a5d3f36a

## 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 the interest and loan installments to the Bank of Baroda and was declared NPA by the bank. The Bank of Baroda initiated SARFAESI proceedings and sold the guarantor's property for Rs. 80,28,990/-. The Financial Creditor, being a guarantor, requested the Corporate Debtor to repay the funds. 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 repay the installments. The Financial Creditor sent a

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a 'default' as defined under Section 3(12) of the Insolvency …

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

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**Reasoning:** The Corporate Debtor acknowledged the outstanding amount and promised to pay by

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

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**Application:** The Corporate Debtor's failure to pay the outstanding amount, despite

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## Parties

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

## Timeline

- **2021-10-01 — Loan Agre…**: Corporate Debtor entered into a Loan…
- **2022-03-31 — Payment Du…**: Corporate Debtor promised to pay the…

## 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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