# In the matter of Bacon Vanijya Pvt. Ltd. C.P. (IB) 133-NCLT-AHM-2021 > NCLT judgment dated 2021-09-20. Citation: TCN-2021-NCLT-01072. The case involves an application filed by the financial creditor, 03 Developers Pvt. Ltd.,… - **Court:** NCLT - **Order date:** 20 Sept 2021 - **Citation:** TCN-2021-NCLT-01072 - **Category:** IBC - **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bacon-vanijya-pvt-ltd-cp-ib-133-nclt-ahm-2021-ee0f6cb7 ## Summary ### Background The case involves an application filed by the financial creditor, 03 Developers Pvt. Ltd., under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, Bacon Vanijya Pvt. Ltd. The amount of default is Rs. 1,24,00,000/-, with the date of default stated as 01.04.2021. The financial creditor disbursed Rs. 1,24,00,000/- on 11.09.2020, supported by bank statements. The corporate debtor failed to make payment on the due date, leading to the financial creditor recalling the loan amount via a notice served on 09.04.2021, after which the application was filed. ## Facts 03 Developers Pvt. Ltd., the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Bacon Vanijya Pvt. Ltd., the corporate debtor. The default amount is Rs. 1,24,00,000/-, with the default date being 01.04.2021. The financial creditor disbursed the amount on 11.09.2020, supported by bank statements. The corporate debtor acknowledged the debt but cited adverse business conditions as the reason for non-payment. A notice recalling the loan was served on 09.04.2021. The application was found complete and defect-free. Amrish Navinchandra Gandhi was proposed as the IRP, with his consent on record and no disciplinary proceedings pending against him. The corporate debtor accepted the debt and liability to … ## Issues and analysis ### Issue 1: Whether the application filed by the financial creditor under Section 7 of the Insolvency and … **Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to … **Reasoning:** The court considered the application, the corporate debtor's statement acknowledging the … **Interpretation:** Section 7 provides a mechanism for financial creditors to recover debts from … **Application:** The court applied Section 7 to the facts, noting the default of Rs. … ## Parties - **Judges:** Madan B.…; Virendra Kumar… - **Appellants:** 03 Developers Pvt… - **Respondents:** Bacon Vanijya… ## Timeline - **2020-09-11 — Disbursement…**: The financial creditor disbursed Rs.… - **2021-04-01 — Default…**: The corporate debtor… ## Legal provisions - [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14) --- This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/bacon-vanijya-pvt-ltd-cp-ib-133-nclt-ahm-2021-ee0f6cb7