# In the matter of C. T. Ramanathan Infrastructure Pvt. Ltd. TCP-233-(IB)-CB-2017

> NCLT judgment dated 2017-11-21. Citation: TCN-2017-NCLT-00159. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Nov 2017
- **Citation:** TCN-2017-NCLT-00159
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/c-t-ramanathan-infrastructure-pvt-ltd-tcp-233-ib-cb-2017-af83ebe7

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The original petition was filed before the High Court of Madras on 23.07.2013 under Sections 433 (e) & (f), 434 (i) (a) and 439 (i) & (b) of the Companies Act 1956 for winding up of the Respondent Company. It was later transferred to the National Company Law Tribunal (NCLT) and renumbered as TCP/233/(IB)/CB/2017. The financial creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, declare a moratorium, and appoint an Interim Resolution Professional (IRP).

## Facts

L&T Finance Limited extended loan facilities to C.T. Ramanathan Infrastructure Pvt. Ltd. in January and February 2012 for business purposes, including the purchase of machinery and vehicles. The Corporate Debtor failed to settle the outstanding amount as per the agreements. The Financial Creditor sent a statutory notice to the Corporate Debtor on 12.03.2013, detailing the agreements and the amount due. The Financial Creditor also filed claims before the Arbitral Tribunal, which passed awards in favor of the Financial Creditor on 20.05.2013 and 21.05.2013. The total outstanding debt was Rs.3,03,92,383/-. The Corporate Debtor appeared before the Bench and submitted that they were ready and willing to pay the outstanding debt and requested time. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, should be …

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

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**Reasoning:** The court ascertained that the Corporate Debtor had defaulted in making payment of the

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

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**Application:** The court applied Section 7 to the facts of the case, noting that the Financial

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## Parties

- **Judges:** Ch. Mohd Sharief…; S. VIJAYARA…
- **Appellants:** L&T Finance…
- **Respondents:** C.T.RAMANATHAN…
- **Advocates:** R. Umash…; S. Srin…

## Timeline

- **2012-01-01 — Loan Facility…**: Financial Creditor extended loan facility to the Corporate Debtor in the month of…
- **2012-02-01 — Further Loan Facility…**: Financial Creditor further extended loan facility to the Corporate Debtor in the month 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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