# In the matter of Falcon Consultancy Pvt. Ltd. C.P. (IB) No. 300-KB-2017 > NCLT judgment dated 2018-02-23. Citation: TCN-2018-NCLT-01783. The case involves an application filed by 44 Noida Infratech (Two) Private Limited, the… - **Court:** NCLT - **Order date:** 23 Feb 2018 - **Citation:** TCN-2018-NCLT-01783 - **Category:** IBC - **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/falcon-consultancy-pvt-ltd-cp-ib-no-300-kb-2017-94b2ca49 ## Summary ### Background The case involves an application filed by 44 Noida Infratech (Two) Private Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against Falcon Consultancy Private Limited, the Corporate Debtor, due to a default in repayment of a loan amounting to Rs. 45,20,00,000/-. The Financial Creditor and Corporate Debtor entered into a loan agreement on 01.12.2012, where the Corporate Debtor agreed to mortgage its self-acquired properties and provide corporate guarantees of its 19 sister concerns to secure the loan. A facilitation agreement was also executed on 01.12.2012 to transfer the loan amount. A power of attorney was executed, appointing the Financial Creditor as attorney holder of … ## Facts 44 Noida Infratech (Two) Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Falcon Consultancy Private Limited (Corporate Debtor) due to a default in loan repayment. The loan agreement, dated 01.12.2012, stipulated a loan amount of Rs. 30 crores, later totaling Rs. 45,20,00,000/- inclusive of interest and charges. The Corporate Debtor agreed to mortgage properties and provide corporate guarantees. A facilitation agreement was executed on 01.12.2012 to transfer the loan. A power of attorney was granted to the Financial Creditor over 51% of the Corporate Debtor's sister concerns' shares. Addenda to the loan agreement were executed on 28.12.2012 and 07.02.2013. The Corporate Debtor defaulted on … ## Issues and analysis ### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and … **Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to … **Reasoning:** The court observed that the Financial Creditor had filed the application under Section 7 … **Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the … **Application:** The Financial Creditor's application was found to be in the correct format, … ## Parties - **Judges:** V. P. S…; Jinan… - **Appellants:** 44, Noida… - **Respondents:** Falcon Consultancy…; Falcon Consultancy… - **Advocates:** Deepnath Roy…; Ayan Chakr…; +1 more ## Timeline - **2012-12-01 — Loan Agre…**: Loan agreement executed between 44 Noida Infratech (Two) Private Limited and Falcon… - **2012-12-01 — Facilitation A…**: Facilitation agreement executed to facilitate/transfer the loan amount in favor 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) --- 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/falcon-consultancy-pvt-ltd-cp-ib-no-300-kb-2017-94b2ca49