# In the matter of Bansal Diamonds Private Limited C.P. No. IB-945(PB)-2020

> NCLT judgment dated 2022-05-10. Citation: TCN-2022-NCLT-04824. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 May 2022
- **Citation:** TCN-2022-NCLT-04824
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/bansal-diamonds-private-limited-cp-no-ib-945pb-2020-1f743c5e

## Summary

### Background

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Bansal Diamonds Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP).

## Facts

The application was filed on 20.03.2020 under Section 7 of the IBC, 2016.

M/s Bansal Diamonds Private Limited is indebted to Punjab National Bank for Rs. 96,59,24,446 as on 15.03.2020.

The Corporate Debtor's account was classified as NPA on 30.06.2014.

The applicant bank issued a demand notice under Section 13(2) of the SARFAESI Act 2002 dated 07.07.2014 for an amount of Rs. 38.06 crore.

The Corporate Debtor acknowledged its debt towards the Financial Creditor in its balance sheet for the financial year 2018-19.

The Financial Creditor filed a certificate along with a Bank Statement under Section 2A of the Bankers' Books Evidence Act 1891.

## Issues and analysis

### Issue 1: Whether entries in books of account and/or balance sheets of a Corporate Debtor would amount to an …

**Ratio:** Yes, entries in books of accounts and/or balance sheets of a Corporate Debtor would

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**Reasoning:** The court relied on the judgment of the Hon'ble Supreme Court in Dena Bank (now BOB) vs

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**Interpretation:** An acknowledgement of liability that is made in a balance sheet can amount to

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**Application:** The Corporate Debtor acknowledged its debt towards the Financial Creditor in

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## Parties

- **Judges:** Ramalingam…; Sh. Avinash Kumar…
- **Appellants:** Punjab National…
- **Respondents:** M/s Bansal…
- **Other parties:** Reetesh Kumar…
- **Advocates:** Akansh…; Vivek…; +4 more

## Timeline

- **2020-03-20 — Application…**: The present Application is filed…
- **2014-06-30 — NPA Classif…**: The account was classified as a Non…

## 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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