# In the matter of Ishwar Chand Agro Pvt. Ltd. Company Petition (IB) No. 50-ALD-2019

> NCLT judgment dated 2020-12-18. Citation: TCN-2020-NCLT-00043. The case pertains to a petition filed by M/S Intec Capital Ltd, the financial creditor, under…

- **Court:** NCLT
- **Order date:** 18 Dec 2020
- **Citation:** TCN-2020-NCLT-00043
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ishwar-chand-agro-pvt-ltd-company-petition-ib-no-50-ald-2019-e53e6218

## Summary

### Background

The case pertains to a petition filed by M/S Intec Capital Ltd, the financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, M/S Ishwar Chand Agro Pvt. Ltd., due to its inability to liquidate its financial debt. The corporate debtor had approached the financial creditor for a business loan of Rs. 1,32,500, pursuant to which a sanctioned letter was issued on 31.07.2015 for Rs. 1,32,50,000. The corporate debtor was to repay the loan in 72 monthly installments with a 14.50% per annum interest rate. The corporate debtor started making repayments from 05.09.2015 but subsequently defaulted, leading to the financial creditor recalling the loan and

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## Facts

M/S Intec Capital Ltd (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/S Ishwar Chand Agro Pvt. Ltd (Corporate Debtor). The Corporate Debtor approached the Financial Creditor for a business loan of Rs. 1,32,500. The Financial Creditor issued a sanctioned letter on 31.07.2015 for Rs. 1,32,50,000. A loan agreement was entered into, requiring the Corporate Debtor to repay the loan in 72 monthly installments with a 14.50% per annum interest rate, resulting in a monthly EMI of Rs. 2,76,587. The Corporate Debtor started repayments on 05.09.2015 but subsequently defaulted. The Financial Creditor issued a loan recall notice on 02.08.2017 after repeated requests and notices to regularize the loan payment failed. The

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## Issues and analysis

### Issue 1: Whether there is a duly …

**Ratio:** The legal principle is that for an application under Section 7 of the IBC to be admitted,

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had availed a loan from the

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**Interpretation:** The term 'financial debt' is interpreted as a debt along with interest, if any,

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**Application:** In this case, the loan disbursed by the Financial Creditor to the Corporate

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** M/s Intec Capital…
- **Respondents:** M/S ISHWAR CHAND…

## Timeline

- **2015-07-30 — Financial Creditor…**: The Financial Creditor issued the Sanctioned Letter dated 31.07.2015 for Rs.…
- **2015-09-05 — Corporate Debtor starts…**: The Corporate Debtor started making its…

## 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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