# In the matter of Cosmos Techno Cast Pvt. Ltd. C.P. (I.B) No. 37-7-NCLT-AHM-2018

> NCLT judgment dated 2020-06-02. Citation: TCN-2020-NCLT-01255. Three separate insolvency petitions (CP(IB) No. 35/2018, 36/2018, and 37/2018) were filed under…

- **Court:** NCLT
- **Order date:** 2 Jun 2020
- **Citation:** TCN-2020-NCLT-01255
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cosmos-techno-cast-pvt-ltd-cp-ib-no-37-7-nclt-ahm-2018-9cd3f216

## Summary

### Background

Three separate insolvency petitions (CP(IB) No. 35/2018, 36/2018, and 37/2018) were filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by individual financial creditors (Krashin V. Thummar, Popatbhai P. Thummar, and J.M. Kathrotiya) against Cosmos Technocast Pvt. Ltd. The financial creditors sought initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The creditors claimed that the corporate debtor defaulted on repayment of deposits/unsecured loans made by them. The corporate debtor opposed the petitions, arguing that there was no default, the claims were time-barred under the Limitation Act, and the petitions were filed to harass the company due to family disputes.

## Facts

1. Three separate insolvency petitions were filed by Krashin V. Thummar, Popatbhai P. Thummar, and J.M. Kathrotiya against Cosmos Technocast Pvt. Ltd.
2. The petitioners claimed to be financial creditors who had provided unsecured loans/deposits to the corporate debtor.
3. Krashin V. Thummar claimed to have invested Rs. 3,00,000 in the corporate debtor in 2006-2007, with an agreed interest rate of 2% per month. He served legal notices on 20.07.2017 and 11.10.2017, and the corporate debtor issued cheques for Rs. 4,75,000, but Krashin did not encash cheque no. 008788 dated 17.02.2017 for Rs. 75,206 due to a dispute over the interest rate. He calculated the total amount due as Rs. 23,03,321.
4. Popatbhai P. Thummar claimed to have invested Rs. 3,50,000 in the corporate

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## Issues and analysis

### Issue 1: Whether the petitions filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 are …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 aims to revive debt-ridden companies and is not

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**Reasoning:** The NCLT relied on the decision of the Hon'ble Supreme Court in the matter of Mobilox

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**Interpretation:** The IBC is intended to facilitate the resolution of insolvency and the revival

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**Application:** In this case, the NCLT found that the petitioners were attempting to use the

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Krashin V.…
- **Respondents:** Cosmos Technocast…

## Timeline

- **2018-01-09 — Filing of Pe…**: The financial creditors filed petitions under Section 7 of the Insolvency and Bankruptcy…
- **2018-08-02 — Corporate Debto…**: The Corporate Debtor filed its objection stating that the present application suffers…

## 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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