# In the matter of Pallishree Limited

> NCLT judgment dated 2026-03-27. Citation: TCN-2026-NCLT-00333. Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 27 Mar 2026
- **Citation:** TCN-2026-NCLT-00333
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/pallishree-limited-b2e8b461

## Summary

### Background

Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Pallishree Limited, citing default on credit facilities.

## Facts

Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016.

Pallishree Limited, the Corporate Debtor, availed credit facilities from the Financial Creditor.

On 29.05.2021, the Financial Creditor issued a sanction letter for revised credit facilities.

The Corporate Debtor executed loan and security documents on 28.01.2022, including a Working capital consortium agreement.

The Corporate Debtor started defaulting in the repayment of the credit facilities.

The Financial Creditor classified the account of the Corporate Debtor as Non-Performing Assets (NPA) on 18.06.2023.

The date of default is 18.06.2023, and the total amount of debt is Rs.74,23,22,131.25/- as on 14.09.2023.

…

## Issues and analysis

### Issue 1: Whether the applicant Bank/Financial Creditor has right to file present application without …

**Ratio:** Each Member of the Consortium/Financial Creditors can independently file an application

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**Reasoning:** There is no such agreement between the Consortium Members that each of the member of

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**Interpretation:** The plea of the applicant that present application is not maintainable at law

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**Application:** The Financial Creditor has the right to

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## Parties

- **Judges:** Labh S…; Rekha Kantilal…
- **Appellants:** Bank of…
- **Respondents:** Pallishree…
- **Other parties:** Neeraj…
- **Advocates:** Rahul A…; Aditya G…; +3 more

## Timeline

- **2021-05-29 — Sanction…**: Financial Creditor issued a sanction…
- **2022-01-28 — Loan and Security…**: Corporate Debtor executed several…

## 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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