# in the matter of Arrow Resources Ltd. CP No. IB-152-(PB)-2017

> NCLT judgment dated 2017-08-07. Citation: TCN-2017-NCLT-00655. Macro Leafin Private Limited, the Financial Creditor, filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 7 Aug 2017
- **Citation:** TCN-2017-NCLT-00655
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arrow-resources-ltd-cp-no-ib-152-pb-2017-581d6ebf

## Summary

### Background

Macro Leafin Private Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Insolvency Resolution Process against Arrow Resources Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor had defaulted on a loan agreement. The Financial Creditor proposed the name of Ambarish Chatterjee as the Interim Resolution Professional.

## Facts

Macro Leafin Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Arrow Resources Limited (Corporate Debtor). The Financial Creditor is a company incorporated under the Companies Act, 1956. The Corporate Debtor is a non-government public company with an authorized share capital of Rs. 25,00,000/- and a paid-up share capital of Rs. 5,00,000/-. The Financial Creditor granted a loan of Rs. 4,50,000/- on 2016-06-10 and Rs. 86,000/- on 2016-06-13 to the Corporate Debtor. A loan agreement was executed on 2016-06-01, with the total loan amount of Rs. 5,36,000/- to be repaid by 2017-03-31. The Corporate Debtor defaulted on 2017-04-01. The Financial Creditor

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has proved that a default has occurred, meeting the requirements of …

**Ratio:** The legal principle is that if a financial creditor proves that a default has occurred,

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**Reasoning:** The court perused the record and found that the Financial Creditor had provided

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**Interpretation:** Section 3(11) and (12) define 'default' and 'debt,' respectively. Section

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**Application:** The court applied the legal principle to the facts of the case, finding that

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** Macro Leafin…
- **Respondents:** Arrow Resources…

## Timeline

- **2016-06-01 — Loan Agreement…**: Loan Agreement was…
- **2016-06-10 — Loan Gra…**: The Financial Creditor granted a loan of…

## 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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