# In the matter of Ramdev PVC Product Pvt. Ltd. CP (IB) 148-NCLT-AHM-2022

> NCLT judgment dated 2023-02-07. Citation: TCN-2023-NCLT-04747. The financial creditor filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 7 Feb 2023
- **Citation:** TCN-2023-NCLT-04747
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ramdev-pvc-product-pvt-ltd-cp-ib-148-nclt-ahm-2022-76b0f997

## Summary

### Background

The financial creditor filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor due to default in repayment of a term loan.

## Facts

Rajkot Nagrik Sahakari Bank Limited, the financial creditor, filed an application on June 21, 2022, 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. The application sought to initiate the Corporate Insolvency Resolution Process against Ramdev PVC Product Private Limited, the corporate debtor, due to an alleged default in loan repayment. The financial creditor is a multi-state cooperative bank, and the corporate debtor is a private limited company incorporated under The Companies Act, 1956. The corporate debtor approached the bank for a term loan for machinery and other business activities. After verifying the projections, a machinery term loan limit of Rs.

…

## Issues and analysis

### Issue 1: Whether the corporate debtor committed a …

**Ratio:** The debt is due and payable, and default has occurred, as evidenced by the classification

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**Reasoning:** The corporate debtor failed to repay the term loan, leading to its account being

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**Interpretation:** The Tribunal interpreted the non-appearance and lack of reply from the

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**Application:** The corporate debtor's failure to repay the sanctioned term loan and subsequent

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## Parties

- **Judges:** DEEPTI M…; Ajai Das Me…
- **Appellants:** Rajkot Nagrik…; Rajkot Nagarik…
- **Respondents:** Ramdev PVC…; Ramdev PVC…
- **Advocates:** For the Applicant:…; For the respondent…

## Timeline

- **October 13, 2017 — Loan Sanc…**: Machinery term loan limits for Rs. 4,60,00,000/- sanctioned to the corporate debtor, and…
- **November 30, 2019 — Account Classified as…**: The corporate debtor's loan account was classified as NPA due to failure to repay 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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