# In the matter of Indradev Goods Private Limited CP (IB) No. 267-KB-2020

> NCLT judgment dated 2021-01-08. Citation: TCN-2021-NCLT-03353. The case involves an application by Hytone Merchants Private Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 8 Jan 2021
- **Citation:** TCN-2021-NCLT-03353
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/indradev-goods-private-limited-cp-ib-no-267-kb-2020-d6914bad

## Summary

### Background

The case involves an application by Hytone Merchants Private Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Indradev Goods Private Limited, the Corporate Debtor. The Financial Creditor claims to have extended financial assistance to the Corporate Debtor, which the latter failed to repay. The Corporate Debtor acknowledged the debt but cited economic recession and business losses as reasons for non-payment.

## Facts

Hytone Merchants Private Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against Indradev Goods Private Limited, the Corporate Debtor. The Financial Creditor had extended financial assistance to the Corporate Debtor, with a paid-up capital of Rs. 3,43,70,740/-. A sum of Rs. 4 lacs was remitted through RTGS from United Bank of India, Kolkata on 15.02.2019, with a condition to repay the loan within six months at 15% interest per annum. The Corporate Debtor failed to repay the amount despite a demand notice issued on December 16, 2019. The Corporate Debtor acknowledged the debt but cited economic recession and business losses as reasons for non-payment. The

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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 Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court found that the Financial Creditor had provided sufficient evidence, including

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

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**Application:** The court applied Section 7 to the facts of the case, finding that the

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## Parties

- **Judges:** Rajasekh…; Harish Chander…
- **Appellants:** Hytone Merchants…
- **Respondents:** Indradev Goods…
- **Advocates:** Sanjib…; Rishav Ba…; +2 more

## Timeline

- **2019-02-15 — RTGS Tra…**: Rs. 4 lacs remitted through RTGS…
- **2019-02-15 — Corporate Debtor…**: Corporate Debtor confirmed the payment…

## 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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