# In the matter of City Square Enterprises Pvt. Ltd. C.P. (IB)No. 54-BB-2020

> NCLT judgment dated 2020-09-09. Citation: TCN-2020-NCLT-00663. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 9 Sept 2020
- **Citation:** TCN-2020-NCLT-00663
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/city-square-enterprises-pvt-ltd-cp-ibno-54-bb-2020-25918f96

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 4 of the I&B (AAA) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. City Square Enterprises Private Limited. The petition was filed by Mr. Gopal Agarwal and others, claiming to be financial creditors. The corporate debtor allegedly defaulted on a payment of Rs. 3,41,12,087.66, including principal and interest as of December 28, 2009.

## Facts

Mr. Gopal Agarwal and others, identified as financial creditors, filed C.P. (IB) No. 54/BB/2020 under Section 7 of the IBC, seeking to initiate CIRP against City Square Enterprises Private Limited, the corporate debtor. The alleged default amount was Rs. 3,41,12,087.66, including principal and interest as of December 28, 2009. The case was listed for hearing multiple times (June 24, 2020, July 1, 2020, August 13, 2020, August 21, 2020, and September 7, 2020). The petitioners or their representatives were absent on all these dates. The respondent's counsel, Mr. Dushyanth Kumar, was present and had filed a reply on March 4, 2020. The court noted the petitioners' absence as a sign of disinterest in prosecuting the case.

## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be initiated against M/s. City …

**Ratio:** The initiation of CIRP under Section 7 of the IBC requires the applicant to demonstrate a

…

**Reasoning:** The court reasoned that the petitioners' repeated absence indicated a lack of interest in

…

**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to initiate

…

**Application:** In this case, the petitioners' absence prevented the court from examining the

…

## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Mr.GopaalAg…
- **Respondents:** City Square…; City Square…
- **Advocates:** Gopaal Ag…; Beena…; +1 more

## Timeline

- **2009-12-28 — Default…**: Alleged default date for the…
- **2020-03-04 — Respondent'…**: Respondent's counsel filed a reply…

## 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)

---

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/city-square-enterprises-pvt-ltd-cp-ibno-54-bb-2020-25918f96