# In the matter of 7 Star Empire Limited

> NCLT judgment dated 2025-03-06. Citation: TCN-2025-NCLT-01090. The case pertains to an application filed by Omkara Assets Reconstruction Pvt. Ltd (Financial…

- **Court:** NCLT
- **Order date:** 6 Mar 2025
- **Citation:** TCN-2025-NCLT-01090
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/7-star-empire-limited-6b31f658

## Summary

### Background

The case pertains to an application filed by Omkara Assets Reconstruction Pvt. Ltd (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against 7 Star Empire Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP).

## Facts

Omkara Assets Reconstruction Pvt. Ltd filed an application under Section 7 of the IBC against 7 Star Empire Limited.

The Corporate Debtor defaulted on a loan facility of Rs.89,50,00,000/- extended by DHFL under a Loan Agreement dated 29.09.2017.

A loan recall notice was issued by the Financial Creditor on 08.11.2019 after the Corporate Debtor defaulted.

The Corporate Debtor paid Rs. 32,12,000/- towards the outstanding principal on 22.01.2020.

DHFL was taken over by Piramal Capital & Housing Finance Limited (PCHFL) through a resolution plan.

PCHFL filed CP(IB) No. 267 of 2022 for initiation of CIRP, which was later allowed to be withdrawn.

A settlement agreement was reached for Rs.45,45,00,000/-, but the Corporate Debtor only paid Rs. 19,06,53,270/-.

…

## Issues and analysis

### Issue 1: Whether the application under Section 7(2) of the Insolvency and Bankruptcy Code for initiation of …

**Ratio:** The Adjudicating Authority is limited to assessing the records provided by the financial

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**Reasoning:** The Corporate Debtor defaulted on its loan obligations, and the total amount in default

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**Interpretation:** The application filed under section 7(2) of the Insolvency and Bankruptcy Code

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**Application:** The Adjudicating Authority admitted the application under Section 7 of the IBC,

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## Parties

- **Judges:** SHAMMI…; SANJEEV S…
- **Appellants:** Omkara Assets…
- **Respondents:** 7 Star Empire…
- **Other parties:** Omkara Assets…; Bishwanath…
- **Advocates:** Rashesh San…; Ravi P…; +2 more

## Timeline

- **2017-09-29 — Loan Agre…**: Loan Agreement dated 29.09.2017 between the Corporate Debtor and Diwan Housing Finance…
- **2017-09-27 — Sanction…**: Letter No. DHFL/2017-18/PF…

## 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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