# In the matter of Mayurpankh Fine Builders Private Limited CP 1015 (IB)-MB-2019

> NCLT judgment dated 2019-09-19. Citation: TCN-2019-NCLT-01363. This is a joint application being CP 1015/2019 filed by Shailen S. Gala-Hindu Undivided Family,…

- **Court:** NCLT
- **Order date:** 19 Sept 2019
- **Citation:** TCN-2019-NCLT-01363
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mayurpankh-fine-builders-private-limited-cp-1015-ib-mb-2019-04378824

## Summary

### Background

This is a joint application being CP 1015/2019 filed by Shailen S. Gala-Hindu Undivided Family, along with 8 other Financial Creditors or Applicants, under section 7 of Insolvency & Bankruptcy Code, 2016 (I&B Code) against Mayurpankh Fine Builders Limited, Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The application was admitted vide order dated on 19.09.2019. The Applicants extended financial assistance to the Corporate Debtor vide cheques dated 15.05.2010. The Corporate Debtor issued On Demand Promissory Notes dated 14.05.2010 in respect of the 9 cheques issued as loan to the Corporate Debtor. The Corporate Debtor issued `Confirmation of Accounts Letter' to the Applicants on 01.04.2014 admitting to its liability to repay

…

## Facts

Shailen S. Gala-HUF & Ors. filed a joint application CP 1015/2019 under Section 7 of the I&B Code, 2016, against Mayurpankh Fine Builders Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The applicants, acting as financial creditors, claimed that the corporate debtor defaulted on payments. The applicants extended financial assistance to the corporate debtor via cheques dated 15.05.2010. The corporate debtor issued promissory notes dated 14.05.2010 and a confirmation of accounts letter dated 01.04.2014, acknowledging the debt. The corporate debtor paid TDS on interest from 2012 to May 2017 but failed to make interest payments from 01.10.2016. The total outstanding amount claimed by the applicants is

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the I&B Code, 2016 for initiating CIRP against the …

**Ratio:** Section 7 of the I&B Code, 2016 allows a financial creditor to initiate CIRP against

…

**Reasoning:** The NCLT observed that the applicants are financial creditors, and the corporate debtor

…

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

…

**Application:** The applicants, being financial creditors, have demonstrated that the corporate

…

## Parties

- **Judges:** Mr V. P.…; Mr Rajesh…
- **Appellants:** Shailen S G…
- **Respondents:** Mayurpankh Fine…
- **Advocates:** Sharad B…; Pramod B…; +1 more

## Timeline

- **2010-05-14 — Promissory Not…**: Corporate Debtor issued On Demand…
- **2010-05-15 — Cheques I…**: Applicants extended financial…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/mayurpankh-fine-builders-private-limited-cp-1015-ib-mb-2019-04378824