# In the matter of Maha Mayay Metals LLP CP No. (IB)- 192-7-JPR-2020

> NCLT judgment dated 2021-12-21. Citation: TCN-2021-NCLT-00101. The application was filed by Laxmi Narain Yadav, the applicant, claiming to be a Financial…

- **Court:** NCLT
- **Order date:** 21 Dec 2021
- **Citation:** TCN-2021-NCLT-00101
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maha-mayay-metals-llp-cp-no-ib-192-7-jpr-2020-8a182daf

## Summary

### Background

The application was filed by Laxmi Narain Yadav, the applicant, claiming to be a Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Maha Mayay Metals LLP, the Corporate Debtor. The applicant was a partner in the registered partnership firm 'M/s Mahamayay Steels' since 08.12.2010, which later became a Limited Liability Partnership 'M/s Mahamayay Metals LLP' on 02.09.2020. The Corporate Debtor is in the business of manufacturing and trading MS Ingots.

## Facts

Laxmi Narain Yadav, the applicant, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Maha Mayay Metals LLP, the Corporate Debtor. The applicant claimed to be a Financial Creditor. The applicant was a partner in the registered partnership firm 'M/s Mahamayay Steels' since 08.12.2010. The firm was later registered as a Limited Liability Partnership 'M/s Mahamayay Metals LLP' on 02.09.2020. The applicant granted a loan of Rs. 2,01,56,757.20/- to the partnership firm. The loan was to be repaid by 31.12.2019 with 12% interest per annum. The partnership firm failed to repay the loan. Two post-dated cheques were issued but were dishonored. The corporate debtor acknowledged the

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## Issues and analysis

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

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

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**Reasoning:** The Adjudicating Authority considered the provisions of Section 7 of the IBC and the

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

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**Application:** The applicant, being a financial creditor, filed the application under Section

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## Parties

- **Judges:** Deep Chandr…; RAGHU N…; +1 more
- **Appellants:** Laxmi Naria…
- **Respondents:** Maha Mayay Metals…; Vijendra…
- **Advocates:** Abhisar…; Vijendra…

## Timeline

- **2010-12-08 — Partnership Firm…**: M/s Mahamayay Steels was established…
- **2019-04-01 — Retirement-cum-Admission…**: Applicant and Shri Ashoo Yadav entered into a retirement cum admission deed with Shri…

## 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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