# In the matter of ASAP Retail Private Limited CP (IB) No. 1254-KB-2018

> NCLT judgment dated 2019-12-06. Citation: TCN-2019-NCLT-00289. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Dec 2019
- **Citation:** TCN-2019-NCLT-00289
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/asap-retail-private-limited-cp-ib-no-1254-kb-2018-6170814f

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Veda Commercial Pvt. Ltd., the financial creditor, to initiate the Corporate Insolvency Resolution Process (CIRP) against ASAP Retail Private Limited, the corporate debtor. The financial creditor claimed that the corporate debtor defaulted on a loan repayment. The application was filed before the National Company Law Tribunal (NCLT), Kolkata Bench.

## Facts

Veda Commercial Pvt. Ltd. (financial creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 to initiate Corporate Insolvency Resolution Process (CIRP) against ASAP Retail Private Limited (corporate debtor). The financial creditor granted a loan of Rs. 25 lakh to the corporate debtor on 2013-05-07 with interest at 10% per annum for the financial year 2013-14, and thereafter at 9% per annum payable quarterly. The corporate debtor repaid Rs. 12 lakh in three installments on 2015-07-01, 2015-07-07, and 2015-10-01. A cheque issued by the corporate debtor was dishonored. The corporate debtor last paid interest on 2017-09-15, which the financial creditor claims as the date of default. The corporate debtor argued that the loan was an

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** An application under Section 7 of the IBC can be admitted if it is complete and

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**Reasoning:** The NCLT found the application to be complete and defect-free, indicating that all

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**Interpretation:** Section 7 of the IBC requires the Adjudicating Authority to ascertain the

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**Application:** The NCLT's finding that the application was complete and defect-free allowed it

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Veda Commercial…
- **Respondents:** ASAP Retail…

## Timeline

- **2013-05-07 — Loan Gra…**: Financial creditor granted a loan of…
- **2015-07-01 — Repayment Ins…**: Corporate debtor repaid principal amount…

## 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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