# In the matter of Devesh Engineering Enterprises Private Limited CP (IB) No. 232-7-HDB-2020

> NCLT judgment dated 2021-02-19. Citation: TCN-2021-NCLT-02978. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 19 Feb 2021
- **Citation:** TCN-2021-NCLT-02978
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/devesh-engineering-enterprises-private-limited-cp-ib-no-232-7-hdb-2020-0b19957d

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) by Tejaswini Engineering Private Limited (Financial Creditor) against Devesh Engineering Enterprises (P) Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed that the Corporate Debtor defaulted on a financial debt of Rs. 11,31,65,339/- as of 01.01.2018, stemming from an unsecured loan agreement dated 01.01.2018, where Rs. 8,84,10,421/- was granted and disbursed. The Corporate Debtor was supposed to repay the loan in 8 installments.

## Facts

Tejaswini Engineering Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against Devesh Engineering Enterprises (P) Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Financial Creditor granted an unsecured loan of Rs. 8,84,10,421/- to the Corporate Debtor on 01.01.2018, with repayment scheduled in 8 installments of Rs. 1,10,51,303/- every three months. The Corporate Debtor defaulted on the loan, leading to a total outstanding debt of Rs. 11,31,65,339/- as of 01.01.2018. The Corporate Debtor admitted to the debt in its reply affidavit. The Financial Creditor proposed Mr. Bhaskar B as the Interim Resolution Professional (IRP).

## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default on a financial debt, justifying the initiation of …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

…

**Reasoning:** The court noted that the Corporate Debtor admitted the fact that the Financial Debt of

…

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

…

**Application:** The Corporate Debtor's admission of the debt and the evidence of default on the

…

## Parties

- **Judges:** Madan B.…; BINOD KUMAR…
- **Appellants:** Tejaswini…
- **Respondents:** Devesh Engineering…; Devesh Engineering…

## Timeline

- **2018-01-01 — Loan Agreeme…**: Loan agreement between Tejaswini Engineering Private Limited and Devesh Engineering…
- **2018-01-01 — Default…**: Corporate Debtor committed default on…

## 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/devesh-engineering-enterprises-private-limited-cp-ib-no-232-7-hdb-2020-0b19957d