# In the matter of Cosmos Technocast Pvt. Ltd. C.P. (I.B) No. 36-7-NCLT-AHM-2018

> NCLT judgment dated 2020-06-02. Citation: TCN-2020-NCLT-01260. The case involves three I.B. Petitions (CP(IB) No. 35/2018, CP(IB) No. 36/2018, and CP(IB) No.…

- **Court:** NCLT
- **Order date:** 2 Jun 2020
- **Citation:** TCN-2020-NCLT-01260
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cosmos-technocast-pvt-ltd-cp-ib-no-36-7-nclt-ahm-2018-147f6883

## Summary

### Background

The case involves three I.B. Petitions (CP(IB) No. 35/2018, CP(IB) No. 36/2018, and CP(IB) No. 37/2018) filed by different financial creditors against the same corporate debtor, M/s. Cosmos Technocast Pvt. Ltd., under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditors sought initiation of the Corporate Insolvency Resolution Process (CIRP). The petitions were heard together due to common facts and similar issues raised. The corporate debtor opposed the petitions, claiming that there was no default and that the petitions were filed to harass the company due to family disputes. The corporate debtor also argued that the claims were barred by limitation and that the object of the Code is revival, not recovery of dues.

## Facts

Mr. Krashin V. Thummar, Mr. Popatbhai P. Thummar, and Mr. J. M. Kathrotiya, the financial creditors, filed petitions against M/s. Cosmos Technocast Pvt. Ltd., the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditors claimed that they had invested money in the corporate debtor company, which was treated as unsecured loans/deposits, and that the corporate debtor had defaulted in repayment. The corporate debtor argued that there was no default, that the claims were barred by limitation, and that the petitions were filed to harass the company due to family disputes. The corporate debtor also contended that it was a healthy and profit-making company. The financial creditors had issued cheques towards unsecured loan to the

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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, is intended for the revival of debt-ridden

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**Reasoning:** The court relied on the decision of Hon'ble NCLAT in the matter of Prowess International

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**Interpretation:** The Code should be used for genuine cases of insolvency where the company is

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**Application:** The court found that the present petitions were filed with a malafide intention

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Krashin V.…
- **Respondents:** Cosmos Technocast…
- **Advocates:** Sudhir Na…; Prachi…; +4 more

## Timeline

- **2006-12-13 — Investment by Financial…**: Financial Creditors invested money in the Corporate Debtor Company as unsecured…
- **2017-07-20 — Legal Notice by…**: Financial Creditors issued legal notices to the Corporate Debtor for repayment of the…

## 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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