# In the matter of Maharaja Techno Chromes Private Limited C.P. (IB) No. 39-BB-2021

> NCLT judgment dated 2021-04-06. Citation: TCN-2021-NCLT-02462. M/s. Microsun Solar Tech Private Limited filed C.P (IB) No.39/BB/2021 under Section 7 of the…

- **Court:** NCLT
- **Order date:** 6 Apr 2021
- **Citation:** TCN-2021-NCLT-02462
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maharaja-techno-chromes-private-limited-cp-ib-no-39-bb-2021-452ceddd

## Summary

### Background

M/s. Microsun Solar Tech Private Limited filed C.P (IB) No.39/BB/2021 under Section 7 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Maharaja Techno Chromes Private Limited, citing a default of Rs.2,35,45,628/-. The applicant and corporate debtor had entered into an agreement for sale dated 20.04.2016, where the applicant advanced money for purchase of property. The corporate debtor failed to execute the sale deed due to financial stress.

## Facts

M/s. Microsun Solar Tech Private Limited (Financial Creditor) filed an application under Section 7 of the IBC, 2016, to initiate CIRP against M/s. Maharaja Techno Chromes Private Limited (Corporate Debtor) due to a default of Rs. 2,35,45,628/-. The Financial Creditor and Corporate Debtor entered into an agreement for sale on 20.04.2016, where the Financial Creditor advanced money for the purchase of property bearing Plot No. 55. The Corporate Debtor failed to execute the sale deed due to financial stress, informing the applicant of their inability on 08.02.2020. The Financial Creditor had paid Rs. 1,67,03,041/- till 01.04.2019. The Corporate Debtor admitted the debt and default and expressed its inability to repay the advance amount or transfer the land. The Corporate

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate CIRP against a

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**Reasoning:** The Corporate Debtor admitted to the debt and default, and the Financial Creditor

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**Interpretation:** The term 'default' under the IBC encompasses the failure to pay a debt when it

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**Application:** The Corporate Debtor's failure to repay the advance amount or transfer the

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. Microsun…
- **Respondents:** M/s. Maharaja…

## Timeline

- **2016-04-20 — Agreement f…**: Applicant entered into an agreement for sale with the Corporate Debtor for purchase of…
- **2019-04-01 — Payment of…**: Applicant had paid…

## 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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