# In the matter of Diksha Green Limited

> NCLT judgment dated 2025-07-02. Citation: TCN-2025-NCLT-00764. Punjab and Sind Bank filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Jul 2025
- **Citation:** TCN-2025-NCLT-00764
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/diksha-green-limited-5da6bd55

## Summary

### Background

Punjab and Sind Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to the Adjudicating Authority) Rules, 2016, against Diksha Greens Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP).

## Facts

Punjab and Sind Bank sanctioned credit facilities aggregating to ₹22.45 Crores to Diksha Greens Limited.

The credit facilities included Cash Credit Limits, Letters of Credit, Bill Discounting Limits, Bank Guarantee, and Term Loan Facilities.

The Corporate Debtor failed to comply with the terms and conditions of the sanction and did not regularize the outstanding dues.

The loan accounts of the Corporate Debtor were classified as non-performing due to the failure to service interest and/or installment obligations.

The Financial Creditor issued a formal Demand Notice dated 12.10.2020 calling upon the Corporate Debtor to repay the outstanding dues.

As of 30.09.2024, the total outstanding claim of the Financial Creditor against the Corporate Debtor stood at ₹46,90,75,470.23.

…

## Issues and analysis

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

**Ratio:** The application is maintainable if a financial debt and default are established, and the

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**Reasoning:** The Adjudicating Authority found that the Financial Creditor had established a financial

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** The Adjudicating Authority admitted the application, finding that the

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## Parties

- **Judges:** BIDISHA BA…; Cmde Siddharth…
- **Appellants:** Punjab & Si…
- **Respondents:** Diksha Greens…
- **Other parties:** Pankaj Kh…
- **Advocates:** Jayati Cho…; Rashmi B…; +2 more

## Timeline

- **2018-01-23 — Sanction Lett…**: Credit facilities were…
- **2018-03-14 — Loan Applicat…**: Loan application was…

## 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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