# in the matter of Mayfair Capital Pvt. Ltd. CP No. (IB)-84-(PB)-2017

> NCLT judgment dated 2017-06-27. Citation: TCN-2017-NCLT-00782. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 27 Jun 2017
- **Citation:** TCN-2017-NCLT-00782
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mayfair-capital-pvt-ltd-cp-no-ib-84-pb-2017-2380bbdf

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by a Non-Banking Financial Company (Jindal Saxena Financial Services Pvt. Ltd.) to initiate Corporate Insolvency Resolution Process (CIRP) against Mayfair Capital Private Limited, the 'Corporate Debtor'. The Financial Creditor, registered as an NBFC under Section 45 1A of the Reserve Bank of India Act, 1934, had extended a loan of Rs. 44,50,00,000/- to the Corporate Debtor through an Inter Corporate Deposit Agreement executed on 25.04.2014. The loan was disbursed between 28.04.2014 and 06.06.2014. The Corporate Debtor defaulted on repayment, leading to the application for CIRP.

## Facts

Jindal Saxena Financial Services Pvt. Ltd., a Non-Banking Financial Company (NBFC) registered under Section 45 1A of the Reserve Bank of India Act, 1934, extended a loan of Rs. 44,50,00,000/- to Mayfair Capital Private Limited, the Corporate Debtor, through an Inter Corporate Deposit Agreement dated 25.04.2014. The loan was disbursed between 28.04.2014 and 06.06.2014. The Corporate Debtor defaulted on repayment, which was due on 24.04.2016, and failed to pay interest, resulting in an outstanding amount of Rs. 8,17,70,274/- as of 07.03.2017. The Financial Creditor served legal notices on the Corporate Debtor on 26.11.2015 and 15.03.2017, demanding repayment of the outstanding amount, which totaled Rs. 56,33,96,066/-. The Corporate Debtor failed to make any payments. The

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## Issues and analysis

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

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

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**Reasoning:** The court found that the Financial Creditor had placed on record all the necessary

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

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**Application:** The Financial Creditor demonstrated that the Corporate Debtor had defaulted on

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## Parties

- **Judges:** CHIEF JUSTICE…; Deepa Kr…; +1 more
- **Appellants:** M/s. Jindal…
- **Respondents:** M/s Mayfair…; M/s. Mayfair…

## Timeline

- **1934-01-01 — Reserve Bank of India…**: The Financial Creditor is registered as an NBFC under Section 45 1A of the Reserve Bank…
- **1994-05-18 — Registration of…**: The Financial Creditor was registered…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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