# In the matter of Maxworth Realty India CP(IB) No. 90-BB-2017

> NCLT judgment dated 2018-01-05. Citation: TCN-2018-NCLT-01962. The case involves a petition filed by financial creditors, Ajay Gopaldas Samat (HUF) & Another…

- **Court:** NCLT
- **Order date:** 5 Jan 2018
- **Citation:** TCN-2018-NCLT-01962
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maxworth-realty-india-cpib-no-90-bb-2017-9e611011

## Summary

### Background

The case involves a petition filed by financial creditors, Ajay Gopaldas Samat (HUF) & Another and Mrs. Manisha A. Samat, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Maxworth Realty India Limited, the corporate debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The financial creditors had extended a loan of Rs. 1.00 Cr. to the corporate debtor, and a loan agreement was executed on 17.07.2014. The corporate debtor allegedly defaulted on the repayment schedule from February 2015, leading to the filing of this petition. The corporate debtor raised objections, claiming the amount claimed was a disputed debt, repayment of the loan, and fabrication of letters.

## Facts

Ajay Gopaldas Samat (HUF) & Another and Mrs. Manisha A. Samat, the financial creditors, extended a loan of Rs. 1.00 Cr. to Maxworth Realty India Limited, the corporate debtor, as per a loan agreement dated 2014-07-17. The corporate debtor was to adhere to a repayment schedule. The financial creditors issued two cheques totaling Rs. 1.00 Cr. to the corporate debtor, which were encashed. The corporate debtor also mortgaged property as security and the directors executed personal guarantees. From February 2015, the corporate debtor allegedly defaulted on the repayment schedule. The corporate debtor admitted default in letters dated 2015-07-16, 2015-11-27, and 2016-02-11. The corporate debtor issued fresh cheques amounting to Rs. 24,20,720/- and Rs. 21,15,077/-, which

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## Issues and analysis

### Issue 1: Whether the petition filed by the financial creditors under Section 7 of the Insolvency and …

**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 creditors had produced evidence of default,

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to initiate

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**Application:** In this case, the court applied Section 7 of the IBC and determined that the

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## Parties

- **Judges:** Ratakonda…; Ashok Kumar…; +1 more
- **Appellants:** Ajay Gopaldas…
- **Respondents:** Maxworth Realty…

## Timeline

- **2014-07-17 — Loan Agre…**: Loan agreement executed between the financial creditors and the corporate debtor for Rs.…
- **2015-02-01 — Default Com…**: Corporate debtor allegedly started committing default in repayment of loan as per…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 138 — Discharge order](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-138)

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