# In the matter of A.P. Gems and Jewellary Park Private Limited

> NCLT judgment dated 2019-06-04. Citation: TCN-2019-NCLT-03073. The financial creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Jun 2019
- **Citation:** TCN-2019-NCLT-03073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ap-gems-and-jewellary-park-private-limited-92996b39

## Summary

### Background

The financial creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process against the corporate debtor due to a default in repaying a loan amount.

## Facts

M/s. Phoenix Tech Tower Private Limited, the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency & Bankruptcy (Application to the Adjudicating Authority) Rules, 2016. The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. A.P. Gems & Jewellary Park Private Limited, the corporate debtor, alleging a default in loan repayment. The financial creditor claimed a default amount of Rs. 18,06,10,770/- as of December 31, 2018.

## Issues and analysis

### Issue 1: Whether the corporate debtor committed a …

**Ratio:** The Adjudicating Authority was satisfied that the corporate debtor failed to discharge

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**Reasoning:** The financial creditor provided a loan agreement dated January 29, 2011, for Rs.

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**Interpretation:** The court interpreted the submitted documents, including the loan agreement,

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**Application:** Based on the documentary evidence and the corporate debtor's non-appearance,

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## Parties

- **Judges:** Ratakonda…; Ratakonda…
- **Appellants:** Phoenix Tech…
- **Respondents:** A.P. GEMS &…; A.P.Gems &…; +1 more
- **Advocates:** For the Petitioner…; For the Respondent…

## Timeline

- **January 29, 2011 — Loan Agreement…**: M/s. Phoenix Tech Tower Private Limited gave a loan of Rs. 9,00,00,000/- to M/s. A.P.…
- **January 11, 2011 — Share Transfer…**: Share transfer agreement executed by financial creditors, Suresh Chukkapalli and…

## 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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