# In the matter of Jindal Alufoils Private Limited C.P. (I.B) No. 201-7-NCLT-AHM-2019

> NCLT judgment dated 2019-12-04. Citation: TCN-2019-NCLT-00319. The case involves an I.B. Petition filed by Girnar Extrusions Private Limited (Financial…

- **Court:** NCLT
- **Order date:** 4 Dec 2019
- **Citation:** TCN-2019-NCLT-00319
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jindal-alufoils-private-limited-cp-ib-no-201-7-nclt-ahm-2019-930e5ace

## Summary

### Background

The case involves an I.B. Petition filed by Girnar Extrusions Private Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Jindal Alufoils Private Limited (Corporate Debtor). The petition arises from a default by the Corporate Debtor in repaying a loan of Rs. 15 lakhs availed from the Financial Creditor. The Financial Creditor advanced an interest-free loan to the Corporate Debtor for a period of two years, as per a Memorandum of Understanding. The Corporate Debtor failed to repay the loan by the agreed date, leading to the default and subsequent filing of the I.B. Petition.

## Facts

Girnar Extrusions Private Limited (Financial Creditor) filed an I.B. Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Jindal Alufoils Private Limited (Corporate Debtor). The Financial Creditor advanced an interest-free loan of Rs. 15 lakhs to the Corporate Debtor for two years, as per a Memorandum of Understanding (MOU) entered on 2015-09-28. The loan was disbursed on 2015-09-26 through RTGS to the Corporate Debtor's account in Bank of Baroda. The Corporate Debtor failed to repay the loan by the agreed date of 2017-09-25, resulting in a default. The date of default is 2017-09-26, two years after the disbursal. The I.B. Petition was filed on 2019-01-17, within the limitation period. The Corporate Debtor did not file any objection to the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in repayment of the loan amount to the Financial …

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

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

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**Interpretation:** The interpretation of Section 7 is that if a financial debt exists and a

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**Application:** In this case, the Financial Creditor demonstrated that a loan of Rs. 15 lakhs

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Girnar Extrusions…
- **Respondents:** Jindal Alufoils…

## Timeline

- **1983-02-02 — Incorporation of…**: Girnar Extrusions Pvt.…
- **2006-06-08 — Incorporation of…**: Jindal Alufoils Private…

## 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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