# In the matter of Aristo Developers Private Limited CP (IB) -2714-I&BP-MB-2018

> NCLT judgment dated 2018-11-20. Citation: TCN-2018-NCLT-00295. Dipco Private Limited (Petitioner) initiated Corporate Insolvency Resolution Process (CIRP)…

- **Court:** NCLT
- **Order date:** 20 Nov 2018
- **Citation:** TCN-2018-NCLT-00295
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aristo-developers-private-limited-cp-ib-2714-ibp-mb-2018-a0e049aa

## Summary

### Background

Dipco Private Limited (Petitioner) initiated Corporate Insolvency Resolution Process (CIRP) against Ariisto Developers Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, citing default in repayment of a loan facility. The Petitioner claimed that the Corporate Debtor defaulted on 15.07.2018 onwards in repaying a loan of Rs. 16,44,23,029/- including interest. The loan was initially granted to Ariisto Developers as a partnership firm, which later converted into a private limited company. The Petitioner provided details of loan disbursements made between 2010 and 2016.

## Facts

Dipco Private Limited (Petitioner) sought to initiate Corporate Insolvency Resolution Process (CIRP) against Ariisto Developers Private Limited (Corporate Debtor) due to a default in loan repayment. The Corporate Debtor allegedly defaulted on 15.07.2018 onwards, owing Rs. 16,44,23,029/- including interest. The loan, carrying a 15% p.a. interest, was initially granted to Ariisto Developers as a partnership firm, later converted into a private limited company. Disbursements occurred between 2010 and 2016: Rs. 5,00,00,000/- on 2010-09-29, Rs. 5,00,00,000/- on 2011-10-08, Rs. 1,00,00,000/- on 2012-10-17, and Rs. 1,10,00,000/- on 2016-03-15. The Petitioner presented Bills of Exchange and post-dated cheques. A Bill of Exchange dated 2017-04-01 for Rs. 12,10,00,000/- was due

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## Issues and analysis

### Issue 1: Whether the petition filed by Dipco Private Limited under Section 7 of the Insolvency and …

**Ratio:** A petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 is maintainable if

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**Reasoning:** The Adjudicating Authority considered the Corporate Debtor's contention that the petition

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** The Corporate Debtor's acknowledgment of the debt and interest payments,

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Dipco Private…
- **Respondents:** Ariisto Developers…

## Timeline

- **2010-09-29 — Loan Disbur…**: Rs. 5,00,00,000/- paid…
- **2011-10-08 — Loan Disbur…**: Rs. 5,00,00,000/- paid…

## 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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