# In the matter of Flywheel Logistics Solutions Private Limited Company Petition No. IB 651-ND-2020

> NCLT judgment dated 2020-10-06. Citation: TCN-2020-NCLT-00452. The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 6 Oct 2020
- **Citation:** TCN-2020-NCLT-00452
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/flywheel-logistics-solutions-private-limited-company-petition-no-ib-651-nd-2020-e4cad34b

## Summary

### Background

The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Nuvision (Delhi) Private Limited, the Financial Creditor, to initiate Corporate Insolvency Resolution Process (CIRP) against Flywheel Logistics Solution Private Limited, the Corporate Debtor. The applicant sought to trigger CIRP based on a default in repayment of a loan. The corporate debtor had appeared but did not file a reply to the application.

## Facts

Nuvision (Delhi) Private Limited (the Applicant/Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Flywheel Logistics Solution Private Limited (the Corporate Debtor). In 2019, the Corporate Debtor sought a loan of Rs. 50,00,000/- from the Applicant, which was granted due to a prior business relationship and trust between the parties. The Applicant transferred Rs. 4,25,000/- on 30.04.2019 and Rs. 45,75,000/- on 08.05.2019 to the Corporate Debtor's IDBI account. An agreement was entered into on 01.07.2019 for the loan at a 15% p.a. interest rate, to be repaid by 01.01.2020. The total amount to be repaid, including interest, was Rs. 53,75,500/-, for which

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is complete and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency

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**Reasoning:** The Tribunal observed that the application was filed in the prescribed format under Rule

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**Interpretation:** Section 7 of the IBC outlines the procedure for a financial creditor to

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**Application:** The court determined that the application was filed in the correct format and

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## Parties

- **Judges:** DEEPTI M…; SUMΙΤΑ PURK…
- **Appellants:** Nuvision (Delhi)…
- **Respondents:** Flywheel Logistics…
- **Advocates:** Achin…; Manohar…; +1 more

## Timeline

- **2019-01-01 — Loan sought by…**: The corporate debtor sought a loan of…
- **2019-04-30 — First Tranche…**: The applicant transferred Rs.…

## 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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