# In the matter of Jeevan Jyoti Vanijya Limited C.P.No.IB-464- (ND)-2017

> NCLT judgment dated 2019-01-15. Citation: TCN-2019-NCLT-05234. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Jan 2019
- **Citation:** TCN-2019-NCLT-05234
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jeevan-jyoti-vanijya-limited-cpnoib-464-nd-2017-1215907c

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Nimit Builders Private Limited (Financial Creditor) against Jeevan Jyoti Vanijya Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor defaulted on a loan of Rs. 3,00,00,000/- disbursed on 02.05.2017, which was to be repaid within 30 days with 24% interest per annum. The Corporate Debtor allegedly approached the Financial Creditor in April 2017, and the date of default was 01.06.2017. The Financial Creditor served a notice on 12.08.2017 to the Corporate Debtor to make payments.

## Facts

Nimit Builders Private Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Jeevan Jyoti Vanijya Limited, the Corporate Debtor. The Corporate Debtor approached the Financial Creditor in April 2017 for a loan. The Financial Creditor disbursed a loan of Rs. 3,00,00,000/- on 02.05.2017, to be repaid within 30 days with 24% interest per annum. The Corporate Debtor failed to repay the loan, and the date of default was 01.06.2017. The Financial Creditor served a notice on 12.08.2017. The Corporate Debtor claimed to have transferred Rs. 30,00,000/- in three installments and asserted a compromise agreement. The Financial Creditor submitted a statement of account evidencing the transfer of Rs. 3,00,00,000/-.

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## Issues and analysis

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

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Tribunal found that the Corporate Debtor had defaulted on the repayment of the loan,

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The Tribunal applied Section 7 to the facts, finding that the loan agreement,

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## Parties

- **Judges:** R. VARADH…; V.K. SUB…
- **Appellants:** Nimit Builders…
- **Respondents:** Jeevan Jyoti…

## Timeline

- **2017-04-01 — Loan Appli…**: The Corporate Debtor approached the…
- **2017-05-02 — Loan Disbur…**: The Financial Creditor disbursed a loan of…

## 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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