# In the matter of P.C.DEY AND SON DISTRIBUTORS PRIVATE LIMITED

> NCLT judgment dated 2025-07-04. Citation: TCN-2025-NCLT-00832. Indian Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 4 Jul 2025
- **Citation:** TCN-2025-NCLT-00832
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/pcdey-and-son-distributors-private-limited-59c5b59e

## Summary

### Background

Indian Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s P.C Dey & Son Distribution Private Limited, citing default on loan repayment.

## Facts

Indian Bank sanctioned credit facilities to M/s P.C Dey & Son Distribution Private Limited aggregating to Rs. 21,00,00,000, which were later enhanced to Rs. 21,85,24,000.

The Corporate Debtor defaulted in repaying the loan, leading to the issuance of demand notices by Indian Bank under Section 13(2) of the SARFAESI Act, 2002.

Indian Bank also initiated recovery proceedings under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, which are pending before Debts Recovery Tribunal-1 Kolkata.

The defaulted amount claimed by Indian Bank is Rs. 30,43,11,409, including accrued interest up to 31.01.2023, with the initial date of default being 01.10.2019.

…

## Issues and analysis

### Issue 1: Whether Mr. Ajit Kumar Jha does not have authorisation …

**Ratio:** A power of attorney granted by a Bank before a merger does not automatically become

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**Reasoning:** The successor Bank can generally utilize the Power of Attorney to initiate or pursue

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**Interpretation:** The plea of the Corporate

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**Application:** The Adjudicating Authority held that Mr. Ajit Kumar Jha had the authorization

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## Parties

- **Judges:** Labh S…; Rekha K…
- **Appellants:** Indian…
- **Respondents:** M/s P.C Dey & Son…
- **Other parties:** Sriram M…
- **Advocates:** Santosh Kum…; Zeba…; +1 more

## Timeline

- **2017-01-30 — Sanction…**: Financial Creditor issued sanction letter dated 31.01.2017 for Rs. 21 crores Annexure-C…
- **2019-11-27 — Notice for Irr…**: Financial Creditor issued notice Annexure-C/8 to Corporate Debtor to review the credit…

## 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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