# In the matter of JBB-Everest Buildtech Private Limited C.P.No. IB-1006-(ND)-2019

> NCLT judgment dated 2019-08-09. Citation: TCN-2019-NCLT-02019. The case involves an application filed by Mr. Devendra Kumar Sharma, a financial creditor,…

- **Court:** NCLT
- **Order date:** 9 Aug 2019
- **Citation:** TCN-2019-NCLT-02019
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jbb-everest-buildtech-private-limited-cpno-ib-1006-nd-2019-9b2a3fee

## Summary

### Background

The case involves an application filed by Mr. Devendra Kumar Sharma, a financial creditor, 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, for initiating the Corporate Insolvency Resolution Process (CIRP) against JBB-Everest Buildtech Private Limited, the corporate debtor. The applicant claims that the corporate debtor approached him for a loan of Rs. 25,00,000, which was granted, with an agreement for repayment on demand along with 15% interest per annum. A loan agreement was executed on 16.08.2017, along with a promissory note, and the amount was disbursed via RTGS on the same date.

## Facts

Mr. Devendra Kumar Sharma (Financial Creditor) provided a loan of Rs. 25,00,000 to JBB-Everest Buildtech Private Limited (Corporate Debtor). The loan agreement, dated 2017-08-16, included a promissory note and stipulated repayment on demand with 15% annual interest. The funds were transferred via RTGS on 2017-08-16. The Corporate Debtor failed to repay the loan despite repeated requests from the Financial Creditor. The Financial Creditor issued a notice on 2019-01-10 demanding repayment. The Corporate Debtor admitted to taking the loan but cited unforeseen circumstances for non-repayment. The Corporate Debtor filed an affidavit admitting its liability. The Financial Creditor filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor meets the requirements for initiating …

**Ratio:** Section 7 of the IBC stipulates the conditions under which a financial creditor can

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**Reasoning:** The court considered the loan agreement, promissory note, bank statements, and the

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**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial debt and

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**Application:** The court applied the ratio to the facts, noting that the financial creditor

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## Parties

- **Judges:** R. VARADH…
- **Appellants:** DEVENDRA KUMAR…
- **Respondents:** JBB-Everest…; INDRESH UP…
- **Advocates:** RAVI KISHAN…; SHRUTI A. C…; +2 more

## Timeline

- **2017-08-16 — Loan Agre…**: Loan agreement executed between Mr. Devendra Kumar Sharma and JBB-Everest Buildtech…
- **2017-08-16 — RTGS Tra…**: Mr. Devendra Kumar Sharma disbursed Rs. 25,00,000 to JBB-Everest Buildtech Private…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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