# In the matter of Nandlal Kamal Kishore Vyapaar Private Limited CP (IB) No. 1568-KB-2019

> NCLT judgment dated 2021-02-02. Citation: TCN-2021-NCLT-03155. The case originates from a petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Feb 2021
- **Citation:** TCN-2021-NCLT-03155
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nandlal-kamal-kishore-vyapaar-private-limited-cp-ib-no-1568-kb-2019-6be880af

## Summary

### Background

The case originates from a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Onemax Yarn Merchants Private Limited (Financial Creditor) against Nandlal Kamal Kishore Vyapaar Private Limited (Corporate Debtor) seeking to initiate Corporate Insolvency Resolution Process (CIRP). The petition was filed due to the Corporate Debtor's failure to repay an inter-corporate deposit. The Financial Creditor claimed a default of Rs. 26,42,583/- including interest. The Corporate Debtor was given multiple opportunities to respond but failed to do so.

## Facts

Onemax Yarn Merchants Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Nandlal Kamal Kishore Vyapaar Private Limited (Corporate Debtor). The Financial Creditor had advanced an inter-corporate deposit of Rs. 25,00,000 to the Corporate Debtor on 08.12.2015. The Corporate Debtor acknowledged the deposit with a money receipt. The repayment was initially due on 01.04.2019, but it was renewed for three months with a post-dated cheque dated 01.07.2019. This cheque was returned due to 'insufficient funds'. The Financial Creditor received interest at 12% p.a. until 31.03.2019. The total outstanding amount, including interest, was Rs. 26,42,583/- as of 01.07.2019. Despite receiving advance notice, the

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor is complete and meets the requirements for …

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

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**Reasoning:** The Adjudicating Authority observed that the petition made by the Financial Creditor was

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

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**Application:** The Adjudicating Authority found that the Financial Creditor's petition was

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## Parties

- **Judges:** Rajasekha…
- **Appellants:** Onemax Yarn…
- **Respondents:** Nandlal Kamal…

## Timeline

- **2015-12-08 — Inter-Corporat…**: Financial Creditor advanced an inter-corporate deposit of Rs. 25,00,000 to the Corporate…
- **2019-04-01 — Repayment D…**: Initial due date for repayment of…

## 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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