# In the matter of CTV Networks Private Limited CP(IB)No.526-7-HDB-2018

> NCLT judgment dated 2019-02-26. Citation: TCN-2019-NCLT-04688. Helpage Finlease Limited filed a Company Petition against CTV Networks Private Limited under…

- **Court:** NCLT
- **Order date:** 26 Feb 2019
- **Citation:** TCN-2019-NCLT-04688
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ctv-networks-private-limited-cpibno526-7-hdb-2018-9bbe132f

## Summary

### Background

Helpage Finlease Limited filed a Company Petition against CTV Networks Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Corporate Debtor had approached the Financial Creditor for a short-term loan of Rs. 25,00,000 in June 2016, which was to be repaid by July 7, 2016, with 18% interest per annum. The Corporate Debtor failed to repay the loan, leading to a default of Rs. 34,99,863 as of September 3, 2018. The Financial Creditor issued a demand notice through its counsel on August 6, 2018, but the Corporate Debtor remained silent.

## Facts

In June 2016, CTV Networks Private Limited (Corporate Debtor) requested a short-term loan of Rs. 25,00,000 from Helpage Finlease Limited (Financial Creditor) to meet urgent business needs. The Financial Creditor granted the loan for three weeks at an interest rate of 18% per annum. The loan was to be repaid by July 7, 2016. The Corporate Debtor failed to repay the loan amount along with interest. As of September 3, 2018, the total amount in default was Rs. 34,99,863. The Financial Creditor issued a demand notice on August 6, 2018, but the Corporate Debtor did not respond. The Respondent argued that the loan was barred under Section 180(i)(c) of the Companies Act, 2013, due to the absence of an Extraordinary General Body Meeting and that the Petitioner did not fall

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor is maintainable under Section 7 of the …

**Ratio:** Section 7 of the IB Code, 2016 allows a financial creditor to initiate the Corporate

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had defaulted on the loan

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The Adjudicating Authority determined that a debt existed and the Corporate

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** M/s.Helpage…
- **Respondents:** CTV Networks…; M/s.CTV Networks…

## Timeline

- **2016-06-01 — Loan Req…**: Corporate Debtor approached Financial Creditor…
- **2016-07-07 — Loan Repayment…**: Date by which the Corporate Debtor…

## 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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