# In the matter of DAMARA GOLD PRIVATE LIMITED

> NCLT judgment dated 2025-12-08. Citation: TCN-2025-NCLT-01789. 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-01789
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/damara-gold-private-limited-637039a0

## 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) claimed a total amount of Rs. 39,19,52,518.04/- as outstanding.

The date of default was mentioned as 30.06.2023.

PNB had sanctioned a term loan and fund-based working capital to Damara Gold Private Limited.

Bank Guarantees issued by PNB were invoked by the beneficiaries for a total amount of Rs. 54,34,00,000/-.

The account of Damara Gold Private Limited was classified as NPA on 30.06.2023.

Damara Gold Private Limited disputed the date of default and the NPA classification.

Damara Gold Private Limited claimed that the charges, processing fees, and commissions levied by PNB were in excess of the prescribed charges by the RBI.

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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:** Yes. The Adjudicating Authority found that the Financial Creditor had placed necessary

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**Reasoning:** The Adjudicating Authority relied on the documents provided by the Financial Creditor,

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**Interpretation:** The Adjudicating Authority interpreted Section 4 of the IBC to mean that if the

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**Application:** The Adjudicating Authority applied the provisions of Section 4 of the IBC to

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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 Term Loan and…
- **2011-06-13 — Execution of D…**: Corporate Debtor executed Hypothecation Agreements, Deed of Hypothecation, and General…

## 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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