# 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-03160. 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-03160
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nandlal-kamal-kishore-vyapaar-private-limited-cp-ib-no-1568-kb-2019-f2528022

## 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 did not appear despite multiple notices and opportunities.

## 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) due to a default on an inter-corporate deposit. On 08.12.2015, the Financial Creditor advanced Rs. 25,00,000/- to the Corporate Debtor, which was acknowledged via a money receipt. The repayment was 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 claimed a total outstanding amount of Rs. 26,42,583/-, including interest at 12% p.a. from the date of default, 01.07.2019. Despite multiple notices, the Corporate Debtor failed to appear before

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## Issues and analysis

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

**Ratio:** A petition under Section 7 of the IBC must be complete in all respects, providing

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**Reasoning:** The Adjudicating Authority examined the petition and the documents submitted by the

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**Interpretation:** Section 7 of the IBC requires the Financial Creditor to provide evidence of the

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**Application:** The Adjudicating Authority found that the Financial Creditor had provided

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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…
- **2019-04-01 — Repayment D…**: The total outstanding…

## 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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