# In the matter of Micro Innovations Private Limited CP (IB) No. 901-KB-2018

> NCLT judgment dated 2018-11-16. Citation: TCN-2018-NCLT-00323. Indiabulls Housing Finance Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 16 Nov 2018
- **Citation:** TCN-2018-NCLT-00323
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/micro-innovations-private-limited-cp-ib-no-901-kb-2018-4921d40b

## Summary

### Background

Indiabulls Housing Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Micro Innovations Private Limited, alleging default in repayment of a loan amounting to Rs. 1,93,99,791/- as per the loan agreement and sanction letter dated 30.11.2014. The Corporate Debtor had approached the Financial Creditor for a loan to meet working capital requirements. The Financial Creditor sanctioned the loan, and a loan agreement was executed. The Corporate Debtor defaulted on payments, leading the Financial Creditor to recall the loan facility.

## Facts

Indiabulls Housing Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Micro Innovations Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had approached the Financial Creditor for a loan of Rs. 1,93,99,791/- to meet working capital requirements. The Financial Creditor sanctioned the loan, and a loan agreement was executed on 30.11.2014. The loan was to be repaid in 180 equated monthly installments. The Financial Creditor disbursed the entire amount on 03.11.2014. The Corporate Debtor defaulted on the monthly installments. To secure the loan, the Corporate Debtor deposited original property documents. The Financial Creditor

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## Issues and analysis

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

**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 Creditor had provided sufficient evidence,

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**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial creditor can

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**Application:** The court applied Section 7 of the IBC to the facts of the case, noting that

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## Parties

- **Judges:** Jinan…
- **Appellants:** Indiabulls…
- **Respondents:** MICRO INNOVATIONS…

## Timeline

- **2014-11-03 — Loan Disbur…**: The Financial Creditor disbursed the entire loan amount of Rs. 1,93,99,791/- to the…
- **2014-11-30 — Loan Agreement…**: A Loan Agreement was executed between the…

## 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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