# In the matter of Alfapeople IT Services Pvt. Ltd. C.P.(IB)No.307-BB-2019

> NCLT judgment dated 2020-02-05. Citation: TCN-2020-NCLT-02076. M/s.Learning Candid India Pvt. Ltd. filed C.P.(IB)No.307/BB/2019 under Section 7 of the IBC,…

- **Court:** NCLT
- **Order date:** 5 Feb 2020
- **Citation:** TCN-2020-NCLT-02076
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alfapeople-it-services-pvt-ltd-cpibno307-bb-2019-8f63334f

## Summary

### Background

M/s.Learning Candid India Pvt. Ltd. filed C.P.(IB)No.307/BB/2019 under Section 7 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s.AlfaPeople IT Services Private Limited, alleging a default of Rs. 12,98,467/-. The default arose from an Inter-Corporate Loan Agreement dated 09.02.2017, where the Petitioner extended a loan of Rs. 30,00,000/- to the Corporate Debtor. The Corporate Debtor made some payments but failed to repay the entire amount along with interest. The Financial Creditor issued request letters for repayment, but the Corporate Debtor expressed inability to repay due to financial difficulties.

## Facts

M/s.Learning Candid India Pvt. Ltd. (Financial Creditor) filed a petition under Section 7 of the IBC, 2016, against M/s.AlfaPeople IT Services Pvt. Ltd. (Corporate Debtor) for a default of Rs. 12,98,467/-. The Financial Creditor and Corporate Debtor entered into an Inter-Corporate Loan Agreement on 09.02.2017, where the Financial Creditor extended a loan of Rs. 30,00,000/- to the Corporate Debtor, to be repaid with 18% interest. The Corporate Debtor made partial payments but failed to repay the entire amount. The Corporate Debtor acknowledged the debt but cited financial difficulties. The Financial Creditor issued request letters for repayment. The loan was disbursed on 14.02.2017. The Financial Creditor passed a special resolution on 07.02.2017 for granting the loan.

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the IBC, 2016 is …

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate CIRP against a

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**Reasoning:** The Adjudicating Authority considered the provisions of Section 7 of the IBC, 2016, and

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The Adjudicating Authority determined that the Financial Creditor had met the

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s.Learning…
- **Respondents:** M/s. AlfaPeople…
- **Advocates:** Amrita…; Suritha Suk…

## Timeline

- **2017-02-09 — Inter-Corporate Loan…**: Execution of Inter-Corporate Loan Agreement between M/s.Learning Candid India Pvt. Ltd.…
- **2017-02-07 — Special Res…**: Financial Creditor passed a special resolution for granting the loan to the Corporate…

## 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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