# In the matter of Gay Printers Vs. Pawan Buildwell Pvt. Ltd. CA (AT) (Insolvency) No. 17 and 18-2017

> NCLAT judgment dated 2018-01-16. Citation: TCN-2018-NCLAT-00393. The Appellant filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLAT
- **Order date:** 16 Jan 2018
- **Citation:** TCN-2018-NCLAT-00393
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gay-printers-vs-pawan-buildwell-pvt-ltd-ca-0b5079ca

## Summary

### Background

The Appellant filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against the Respondent Company. The Adjudicating Authority (NCLT, New Delhi Bench) rejected the application on November 29, 2017, because the Appellant did not qualify as a Financial Creditor. The Adjudicating Authority also noted that the Appellant had not adequately demonstrated how the assets and liabilities of the earlier Gay Printers Partnership Firm had been assigned to the Appellant, and the mandatory form was incomplete. The Appellant then filed a Review Application, which was dismissed on December 19, 2017. Both orders were challenged in this appeal.

## Facts

The Appellant, Gay Printers, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process against the Respondent, Pawan Buildwell Pvt. Ltd. The Adjudicating Authority rejected the application, stating that Gay Printers did not qualify as a Financial Creditor. The loan amount of Rs.1 Crore was originally advanced to Pawan Buildwell by the Gay Printers Partnership firm, which had two partners, Mr. Brij Mohan Sahni and Mr. Surinder Mohan Sahni. Mr. Surinder Mohan Sahni passed away on October 2, 2015, dissolving the partnership firm. The Appellant, Gay Printers, is a reconstituted firm. The court noted that the Appellant failed to demonstrate that it had succeeded to the business of the

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## Issues and analysis

### Issue 1: Whether the Appellant can maintain an application under Section 7 of the Insolvency and Bankruptcy …

**Ratio:** To maintain an application under Section 7 of the I&B Code, the applicant must

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**Reasoning:** The court reasoned that the Appellant failed to demonstrate that it had succeeded to the

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**Interpretation:** Section 7 of the I&B Code requires an applicant to be a Financial Creditor.

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**Application:** The Appellant's application was rejected because the court found insufficient

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## Parties

- **Judges:** Bansi Lal…
- **Appellants:** Gay Pri…
- **Respondents:** Pawan Buildwell…

## Timeline

- **2017-11-29 — Application R…**: The Adjudicating Authority (NCLT) rejected the Appellant's application under Section 7 of…
- **2017-12-19 — Review Application…**: The Adjudicating Authority dismissed…

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