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

> NCLT judgment dated 2019-06-04. Citation: TCN-2019-NCLT-03079. The petition was filed by Phoenix Tech Tower Private Limited, the Financial Creditor, against…

- **Court:** NCLT
- **Order date:** 4 Jun 2019
- **Citation:** TCN-2019-NCLT-03079
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ap-gems-and-jewellary-park-private-limited-cba03009

## Summary

### Background

The petition was filed by Phoenix Tech Tower Private Limited, the Financial Creditor, against A.P.Gems & Jewellary Park Private Limited, the Corporate Debtor, for defaulting on a repayment of Rs. 18,06,10,770/- as of 31.12.2018. The Financial Creditor claimed that a loan agreement was executed on January 29, 2011, where Phoenix Tech Tower Private Limited gave a loan of Rs. 9,00,00,000/- to A.P.Gems & Jewellary Park Private Limited. The total default claimed includes principal and interest at 15% per annum compounded quarterly.

## Facts

Phoenix Tech Tower Private Limited (Financial Creditor) filed a petition against A.P.Gems & Jewellary Park Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 18,06,10,770/- as of 31.12.2018. This amount is based on a loan agreement dated January 29, 2011, where the Financial Creditor lent Rs. 9,00,00,000/- to the Corporate Debtor. The claimed default includes principal and interest at 15% per annum compounded quarterly. The Financial Creditor submitted documents to prove the existence of the financial debt, including the certificate of incorporation, charter documents, Form 26 AS, financial statements, letters of intimation, and legal notices. The Corporate Debtor was served a notice but did not

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in repaying the amount of Rs. 18,06,10,770/- to the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Adjudicating Authority examined the documents submitted by the Financial Creditor and

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

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**Application:** The Financial Creditor provided sufficient documentary evidence, including the

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## Parties

- **Judges:** Ratakonda…
- **Appellants:** Phoenix Tech…
- **Respondents:** A.P. GEMS &…

## Timeline

- **2011-01-29 — Loan Agre…**: Loan agreement executed between Phoenix Tech Tower Private Limited and A.P.Gems &…
- **2019-04-16 — Tribunal…**: Tribunal served notice…

## 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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