# In the matter of Progress Cultivation Limited C.P (IB) No. 249-KB-2019

> NCLT judgment dated 2022-05-12. Citation: TCN-2022-NCLT-02769. The case involves a petition filed by United Bank of India (now Punjab National Bank), the…

- **Court:** NCLT
- **Order date:** 12 May 2022
- **Citation:** TCN-2022-NCLT-02769
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/progress-cultivation-limited-cp-ib-no-249-kb-2019-6da55e13

## Summary

### Background

The case involves a petition filed by United Bank of India (now Punjab National Bank), the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, against Progress Cultivation Limited, the Corporate Debtor. The Financial Creditor sought initiation of the Corporate Insolvency Resolution Process (CIRP) due to the Corporate Debtor's default on a loan of Rs. 5,00,00,000/-. The petition was filed on 12 February 2019.

## Facts

United Bank of India (now Punjab National Bank) extended a loan of Rs. 5,00,00,000/- to Progress Cultivation Limited. The Corporate Debtor defaulted on repayment. The total amount in default was Rs. 6,38,96,634.33/- as of 31 December 2018, with the date of default being 19 July 2014. The Corporate Debtor created a Security Interest on the Factory Premises by depositing the Original Title Deeds in favor of the Financial Creditor and also created securities against movable property. The Corporate Debtor's account was classified as Non-Performing Asset (NPA) on 31 December 2014. The Financial Creditor filed an application under Section 19(1) of the Recovery of Debts due to Banks & Financial Institutions Act, 1993, which is pending. The Financial Creditor took

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is complete in all respects as required by …

**Ratio:** The Adjudicating Authority must be satisfied that the application is complete in all

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**Reasoning:** The Adjudicating Authority perused the record and found that the present petition made by

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**Interpretation:** The completeness of the application is a prerequisite for its admission under

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**Application:** The Adjudicating Authority found the application to be complete, satisfying the

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** United Bank of…
- **Respondents:** Progress Cultivati…

## Timeline

- **2013-06-03 — Loan Appli…**: The Corporate Debtor approached the Financial…
- **2013-06-22 — Loan Sanctioned and…**: The Financial Creditor sanctioned…

## 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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