# In the matter of Cengres Tiles Limited C.P No. (IB) 100-7-NCLT-AHM-2020

> NCLT judgment dated 2020-11-23. Citation: TCN-2020-NCLT-00226. Sanguine Management Services Private Limited filed a petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 23 Nov 2020
- **Citation:** TCN-2020-NCLT-00226
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cengres-tiles-limited-cp-no-ib-100-7-nclt-ahm-2020-e76ef7e9

## Summary

### Background

Sanguine Management Services Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking reliefs under Section 7(5)(a) and Section 13(1)(a)(b)(c) of the Code. The applicant claimed that Cengres Tiles Limited, the respondent, had approached them for temporary financial assistance of Rs. 1,00,00,000 with an assurance of 7% interest per annum. The applicant requested repayment of Rs. 1,10,87,114 in November 2019, and the respondent issued five cheques totaling Rs. 1,20,00,000, which were dishonored. Despite reminders, the respondent allegedly failed to pay the operational debt.

## Facts

Sanguine Management Services Private Limited (the applicant/operational creditor) is a private limited company engaged in management consulting. Cengres Tiles Limited (the respondent/corporate debtor) is also a private limited company. The applicant claimed the respondent approached them for temporary financial assistance of Rs. 1,00,00,000 with a 7% interest assurance. In November 2019, the applicant requested repayment of Rs. 1,10,87,114. The respondent issued five cheques totaling Rs. 1,20,00,000, which were dishonored. The applicant issued a demand notice dated 30.12.2019. The applicant filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The respondent argued the applicant failed to provide evidence of default, lacked necessary licenses,

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## Issues and analysis

### Issue 1: Whether the applicant/operational creditor has provided sufficient evidence to prove the existence …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, requires the applicant to provide sufficient

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**Reasoning:** The court found that the applicant failed to produce sufficient documentary evidence to

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**Interpretation:** The interpretation of the IBC requires strict adherence to the evidentiary

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**Application:** In this case, the applicant's failure to provide a formal agreement or

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Sanguine Managemen…
- **Respondents:** Cengres Tiles…
- **Advocates:** Pranav Th…; Kunjal…

## Timeline

- **2019-11-01 — Applicant requests…**: The applicant requested the respondent…
- **2019-11-22 — Cheques issued by…**: The respondent issued five cheques each of Rs. 20.00 lacs dated between 22.11.2019 and…

## 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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