# In the matter of MTC ECOM Private Limited CP (IB) No.809-MB.IV-2020

> NCLT judgment dated 2020-08-17. Citation: TCN-2020-NCLT-00834. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 17 Aug 2020
- **Citation:** TCN-2020-NCLT-00834
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mtc-ecom-private-limited-cp-ib-no809-mbiv-2020-d9817410

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Nailesh Dresswala (Financial Creditor) against MTC ECOM Private Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is a private company incorporated on 08.12.2011. The petition was filed on 03.03.2020, alleging failure to pay ₹1,00,00,000.00 as principal and ₹23,43,750.00 as interest as of 30.07.2018, the date of default. Initially, the Corporate Debtor entered into an Optionally Convertible Debenture Agreement (OCDA) dated 07.04.2018 with Orios Venture Partners Fund-I, Mr Anupam Mittal and Mr Karan Behal. Subsequently, an Addendum Agreement was entered into on 12.04.2018, whereby the Corporate Debtor was to

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## Facts

Nailesh Dresswala, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against MTC ECOM Private Limited, the Corporate Debtor. The Corporate Debtor was incorporated on 08.12.2011. The petition was filed on 03.03.2020, claiming a default of ₹1,00,00,000.00 as principal and ₹23,43,750.00 as interest as of 30.07.2018. Initially, the Corporate Debtor entered into an Optionally Convertible Debenture Agreement (OCDA) dated 07.04.2018 with Orios Venture Partners Fund-I, Mr Anupam Mittal and Mr Karan Behal. An Addendum Agreement was entered into on 12.04.2018, whereby the Corporate Debtor was to issue Optionally Convertible Debentures to Mr Chandrasekhar Behal. On

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## Issues and analysis

### Issue 1: Whether the application made by the Financial Creditor is complete in all respects as required by …

**Ratio:** Section 7 of the IBC read with rule 4(1) of the Insolvency & Bankruptcy (Application

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**Reasoning:** The Adjudicating Authority found that the application made by the Financial Creditor was

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**Interpretation:** The completeness of the application is a prerequisite for the admission of the

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**Application:** The Financial Creditor provided all necessary documents, including the

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## Parties

- **Judges:** Rajasekha…
- **Appellants:** Nailesh Dre…
- **Respondents:** MTC ECOM Private…

## Timeline

- **2011-12-08 — Incorporation of…**: MTC ECOM Private Limited…
- **2018-04-07 — Optionally Convertible Debenture Agreement…**: Corporate Debtor entered into an OCDA with Orios Venture Partners Fund-I, Mr Anupam…

## 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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