Applications under IBC aimed at recovery without established defaults are impermissible. The Code focuses on corporate resolution, not on dispute resolution of financial debts.

ORDER

PER: MANNI SANKARIAH SHANMUGA SUNDARAM, MEMBER (JUDICIAL)

1. This is an Application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“the Code”) by Kotak Mahindra Bank Limited (“the Financial Creditor/Applicant”) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Mag. T. Exim Limited (“the Corporate Debtor/ Respondent”) on the ground that the Corporate Debtor had committed a default in payment of Rs. 9,44,95,594.97/- (Rupees Nine Crore Forty Four Lakh Ninety Five Thousand Five Hundred Ninety Four and Ninety Seven Paise Only), calculated as on 20.02.2025. The default occurred on the date of 10.12.2024.

2. The Corporate Debtor i.e., Mag. T Exim Limited having CIN: U51909DL1989PLC133465 was incorporated on 03.10.1989 under the provisions of the Companies Act and is having its registered office situated at Rzs-232 Nihal Vihar Nangloi, West Delhi, New Delhi, India-110041. Since the registered office of the Corporate Debtor is in New Delhi, this Tribunal having territorial jurisdiction over the NCT of Delhi is the Adjudicating Authority in relation to the prayer for initiation of Corporate Insolvency Resolution Process in respect of Corporate Debtor under sub-section (1) of Section 60 of the Code.

3. SUBMISSIONS OF THE APPLICANT/FINANCIAL CREDITOR:

i. The Applicant/ Financial Creditor is bank within the provisions of Bank Regulations Act, 1949 having its registered office at 27 BKC, C-27, G-Blaock, Bandra Kurla Complex, Bandra East, Mumbai 400051 and branch office at EPICAH MALL, 2nd Floor, 68,68/1, Near Moti Nagar Metro Station, Najafgarh Road Industrial Area, Moti Nagar, New Delhi-110015.

ii. The present Application under Section 7 of IBC has been signed, verified and instituted by Mr. Raman Kumar, Associate Vice President, who is the Authorized Representative of the Applicant duly authorized by Mr. Ravindra More, Deputy Vice President and as such he is in position to sign, verify and institute the present application on behalf of the Applicant Bank.

iii. The Applicant/ Financial Creditor vide Letter of Authority authorised Mr. Raman Kumar for the Applicant/ Financial Creditor who is fully conversant with the facts of the case. He is also duly authorized and empowered by the Applicant/Financial Creditor to sign, verify and file the present application and do the needful on behalf of the Applicant/Financial Creditor. present application The is accordingly being signed, verified and instituted by the said Mr. Raman Kumar on behalf of the Applicant/Financial Creditor.

iv. The Corporate Debtor, as the Borrower, along with Mr. Naresh Chand, Puneet Jain, Swati Jain, Uma Jain, Ashiana Ispat Ltd., Ashiana Fincap Private Limited, MAG T EXIM Limited, Kamdhenu Steels And Alloys Limited and Naresh Chand HUF approached the Financial Creditor for Loan Facility. Based on the request of the Corporate Debtor along with Mr. Naresh Chand, Mr.Puneet Jain, Mrs, Swati Jain, Mrs. Uma Jain, Ashiana Ispat Limited, Ashiana Fincap Private Limited, Kamdhenu Steels And Alloys Limited and Naresh Chand HUF, the Financial Creditor issued the Sanction Letter dated 17.05.2024 sanctioning the grant of financial facility Loan Against Property (LAP) for an amount of Rs.11,02,00,000/- to all the borrowers.

v. Pursuant to the issuance of the Sanction Letter dated 17.05.2024, the parties entered into Home Equity Loan Agreement 17.05.2024 and Addendum Agreement dated 17.05.2024, wherein Mag. T Exim Limited, Corporate Debtor along with Mr. Naresh Chand, Mr.Puneet Jain, Mrs. Swati Mrs. Uma Jain, Ashiana Ispat Ltd. Ashiana Fincap Private Limited, Kamdhenu Steels And Alloys Limited and Naresh Chand HUF became obliged to abide by the terms and conditions mentioned in Sanction Letter dated 17.05.2024, Home Equity Loan Agreement dated 17.05.2024 and Addendum Agreemen