# In the matter of Goldline Ventures Private Limited C.P. No. IB-1634(PB)-2018

> NCLT judgment dated 2019-02-20. Citation: TCN-2019-NCLT-04754. The case involves an application filed by M/s. Swaraj Overseas, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 20 Feb 2019
- **Citation:** TCN-2019-NCLT-04754
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/goldline-ventures-private-limited-cp-no-ib-1634pb-2018-9c7854be

## Summary

### Background

The case involves an application filed by M/s. Swaraj Overseas, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Goldline Ventures Private Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor defaulted on a loan of Rs. 3,90,00,000/- which was to be repaid with interest. The Corporate Debtor admitted to availing the loan but cited financial difficulties and demonetization as reasons for not being able to repay it within the agreed timeframe.

## Facts

M/s. Swaraj Overseas, a partnership firm engaged in the business of "SS Sheets," filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Goldline Ventures Private Limited. The Financial Creditor, M/s. Swaraj Overseas, lent Rs. 3,90,00,000/- to the Corporate Debtor, Goldline Ventures Private Limited, for a period of three months, as per an agreement dated 2018-06-20. The loan was to be repaid by 2018-09-21 with 15% interest per annum. The Corporate Debtor failed to repay the loan amount and interest on the due date. The Financial Creditor sent a demand notice on 2018-11-06 seeking a refund of Rs. 3,90,00,000/- along with interest. The Corporate Debtor admitted to taking the loan but cited financial crunches and demonetization

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## 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 IBC outlines the procedure for initiating the Corporate Insolvency

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**Reasoning:** The court examined the provisions of Section 7(2) and 7(5) of the IBC, which specify the

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**Interpretation:** The interpretation of Section 7 requires a conjoint reading of its sub-sections

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**Application:** In this case, the court found that the application was filed in the prescribed

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## Parties

- **Judges:** M. M. K…; S.K. МОНА…
- **Appellants:** M/s. Swaraj…
- **Respondents:** Goldline Ventures…
- **Advocates:** Kailash Chand…; Jalaj Ag…

## Timeline

- **2018-06-20 — Loan Agre…**: Loan agreement executed between M/s. Swaraj Overseas and Goldline Ventures Private…
- **2018-09-21 — Repayment D…**: The date on which the loan of 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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