# In the matter of DAMARA GOLD PRIVATE LIMITED

> NCLT judgment dated 2025-12-08. Citation: TCN-2025-NCLT-01787. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 8 Dec 2025
- **Citation:** TCN-2025-NCLT-01787
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/damara-gold-private-limited-3ea43ccd

## Summary

### Background

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Damara Gold Private Limited, seeking appointment of an Interim Resolution Professional (IRP) and initiation of a moratorium.

## Facts

Punjab National Bank (PNB) filed an application under Section 7 of the IBC against Damara Gold Private Limited.

The Financial Creditor (PNB) sanctioned a term loan and non-fund based bank guarantees to the Corporate Debtor (Damara Gold Private Limited).

The Corporate Debtor defaulted in making payments, leading to the account being classified as NPA on 30.06.2023.

The Financial Creditor claimed a total amount of Rs. 39,19,52,518.04/- as of 31.07.2024.

The Corporate Debtor disputed the date of default, NPA classification, and the levying of charges by the Financial Creditor.

The Financial Creditor issued a notice under Section 13(2) of the SARFAESI Act on 10.08.2023.

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has proved the existence of a debt and default exceeding the …

**Ratio:** The Adjudicating Authority must be

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**Reasoning:** The Financial Creditor presented loan documents, security documents, and account

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**Interpretation:** The existence of debt and default was established based on the documents and

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**Application:** The Adjudicating Authority concluded that the debt was in default and exceeded

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Punjab National…
- **Respondents:** Damara Gold…
- **Other parties:** Sumit S…
- **Advocates:** Rohit G…; Karunya Ras…; +4 more

## Timeline

- **2011-03-17 — Sanction…**: Financial Creditor sanctioned the Term Loan of Rs. 5,70,00,000/-, Fund Based Working…
- **2023-06-30 — NPA Classif…**: The account of the Corporate Debtor was classified as an NPA in terms of the extant RBI…

## 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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