# In the matter of Elitedining Private Limited IBA-715-2019

> NCLT judgment dated 2019-08-22. Citation: TCN-2019-NCLT-01839. The case involves a Company Application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 22 Aug 2019
- **Citation:** TCN-2019-NCLT-01839
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/elitedining-private-limited-iba-715-2019-6e65a43c

## Summary

### Background

The case involves a Company Application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against Elite Dining Private Limited. The application was filed by Mr. M. Vikram Kota, the Financial Creditor, on the grounds that the Corporate Debtor defaulted in repaying a loan amount of ₹71,72,305 along with interest of ₹17,81,493.74, totaling ₹89,53,798.74. The Corporate Debtor remained absent during the hearing, but the court noted that notice had been served. The Debtor had obtained hand loans in 2017 and executed promissory notes with a 24% per annum interest rate.

## Facts

Mr. M. Vikram Kota, the Financial Creditor/Petitioner, filed a Company Application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Elite Dining Private Limited, the Corporate Debtor/Respondent, for initiation of Corporate Insolvency Resolution Process (CIRP). The basis for the application was the Corporate Debtor's default in repaying a loan amount of ₹71,72,305 along with interest of ₹17,81,493.74, totaling ₹89,53,798.74. The Corporate Debtor was absent during the hearing, but the court noted that notice had been served. The Corporate Debtor had obtained hand loans in 2017, including ₹12,00,000 and ₹15,00,000, and executed three promissory notes with a 24% per annum interest rate. The Financial Creditor presented email correspondences

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in repaying …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, allows for the initiation of CIRP upon the

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**Reasoning:** The court observed that the Corporate Debtor had taken loans and executed promissory

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**Interpretation:** The court interpreted the evidence presented as sufficient to establish that a

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**Application:** Based on the promissory notes, dishonored cheques, and email correspondences,

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** M. Vikram…
- **Respondents:** M/s. Elite Dining…
- **Advocates:** Ponman…

## Timeline

- **2016-01-01 — Enactment of Insolvency…**: The Insolvency and…
- **2017-01-01 — Debtor obtained hand…**: During the month of 2017, the Debtor obtained hand loans in installments of ₹12,00,000,…

## 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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