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

> NCLT judgment dated 2019-09-19. Citation: TCN-2019-NCLT-01366. 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-01366
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mayurpankh-fine-builders-private-limited-cp-1015-ib-mb-2019-6f5aa09f

## 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 has issued On Demand Promissory Notes dated 14.05.2010 in respect of the 9 cheques issued as loan to the Corporate Debtor, Further the Corporate Debtor has issued `Confirmation of Accounts Letter' to the Applicants on 01.04.2014 admitting to its

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## 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, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The applicants, acting as financial creditors, claimed that the corporate debtor defaulted on repayments. The applicants had extended financial assistance to the corporate debtor through 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 defaulted on interest payments since 01.10.2016. The total outstanding amount claimed to be in default was ₹67,91,498/-. The

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## Issues and analysis

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

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

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**Reasoning:** The Tribunal observed that the applicants had extended financial assistance to the

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

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**Application:** The Tribunal applied Section 7 to the facts, noting the existence of a debt,

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## Parties

- **Judges:** Mr V. P.…; Mr Rajesh…
- **Appellants:** Shailen S G…
- **Respondents:** Mayurpankh Fine…

## Timeline

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

## 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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