# In the matter of JPM Exports Private Limited I.ANo.86-KB-2020 In CP No.2149-KB-2019

> NCLT judgment dated 2021-01-27. Citation: TCN-2021-NCLT-03221. The Financial Creditor filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Jan 2021
- **Citation:** TCN-2021-NCLT-03221
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jpm-exports-private-limited-iano86-kb-2020-in-cp-no2149-kb-2019-ec1c932d

## Summary

### Background

The Financial Creditor filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor due to defaults in repayment of an inter-corporate deposit.

## Facts

Hempragati Vyapaar Private Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against JPM Exports Private Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process. The application was based on a loan of Rs. 25,00,000/- granted to the Corporate Debtor via an Inter-Corporate Deposit Agreement dated August 19, 2015, with disbursement on August 20, 2015. Mr. Ram Gopal Agarwal, a Director of the Financial Creditor, was authorized by a Board Resolution dated October 1, 2019, to submit the application. Defaults in repayment of the principal amount and interest led to a corrigendum to the original agreement on August 20, 2017. This corrigendum extended the loan term, stipulating

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency & …

**Ratio:** An application under Section 7 of the IBC, 2016, for initiating CIRP against a corporate

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**Reasoning:** The Corporate Debtor failed to file a reply or appear in court despite multiple

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**Interpretation:** The NCLT interpreted the Corporate Debtor's non-filing of reply and

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**Application:** Given the Corporate Debtor's failure to respond or appear, and the Financial

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Hempragati…
- **Respondents:** JPM Exports…
- **Advocates:** Noelle Ba…; Mohan Ram…; +1 more

## Timeline

- **August 19, 2015 — Inter-Corporate Deposit…**: Loan of Rs. 25,00,000/- granted to the Corporate Debtor via an Inter-Corporate Deposit…
- **August 20, 2015 — Loan Disbur…**: Disbursement of the loan…

## 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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