# In the matter of Abloom Infotech Pvt. Ltd. C.P. No. IB - 2115(ND)-2019

> NCLT judgment dated 2021-03-11. Citation: TCN-2021-NCLT-02734. DMI Finance Private Limited, a Non-Banking Financial Company, filed an application under…

- **Court:** NCLT
- **Order date:** 11 Mar 2021
- **Citation:** TCN-2021-NCLT-02734
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abloom-infotech-pvt-ltd-cp-no-ib-2115nd-2019-f0438b45

## Summary

### Background

DMI Finance Private Limited, a Non-Banking Financial Company, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S Abloom Infotech Pvt. Ltd, referred to as the corporate debtor. The respondent, M/S Abloom Infotech Pvt. Ltd, against whom initiation of CIRP has been prayed for, was incorporated on 03.05.1994. The Financial Creditor claimed that a sum of Rs.29,53,87,663/67 along with interest is due from the respondent company. The Corporate Debtor is an associate company of a group of companies known as "Ninex Group". The Respondent raised objections against the application, contending that the Financial Creditor had already approached other co-borrowers, namely

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## Facts

DMI Finance Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S Abloom Infotech Pvt. Ltd (Corporate Debtor). The Corporate Debtor was incorporated on 03.05.1994. The Financial Creditor and Corporate Debtor executed a Loan Agreement on 27.04.2016 for a facility of Rs. 16,00,00,000/-. Three other entities, Ninex Developers Limited, Redtopaz Real Estate Private Limited and RMG Developers Private Limited were co-borrowers under the said Loan Agreement. A loan facility of INR 13,35,00,000/- was disbursed in four tranches by the Financial Creditor to the Corporate Debtor against letter of drawdown issued by the Corporate Debtor on

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## Issues and analysis

### Issue 1: Whether the requirements of Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiation …

**Ratio:** Section 7 of the IBC outlines the procedure for initiating CIRP by a financial creditor.

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**Reasoning:** The court found that there was a financial debt owed by the Corporate Debtor to the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to initiate CIRP when a

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**Application:** The court applied Section 7 to the facts of the case and found that the

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** DMI Finance…
- **Respondents:** M/S Abloom…

## Timeline

- **1994-05-03 — Incorporation of…**: M/S Abloom Infotech Pvt.…
- **2016-04-27 — Loan Agre…**: Abloom Infotech Private Limited, the Corporate Debtor executed a Loan Agreement with the…

## 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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