# In the matter of Nestor HR Services Pvt. Ltd. CP (IB) No. 523-Chd-Hry-2019

> NCLT judgment dated 2021-09-20. Citation: TCN-2021-NCLT-01086. Sentinel Consultants Pvt. Ltd. filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 20 Sept 2021
- **Citation:** TCN-2021-NCLT-01086
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nestor-hr-services-pvt-ltd-cp-ib-no-523-chd-hry-2019-f3b49ab6

## Summary

### Background

Sentinel Consultants Pvt. Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Nestor HR Services Pvt. Ltd. (formerly known as Hyper Network), claiming default on a friendly loan of ₹25,00,000/- advanced on 30.11.2018 for a term of six months. The applicant sent reminder letters after the expiry of the loan term, but the corporate debtor failed to repay the amount. The financial creditor issued a statutory recalling notice dated 10.08.2019. The corporate debtor acknowledged the debt but stated its inability to pay.

## Facts

Sentinel Consultants Pvt. Ltd. (the applicant/financial creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Nestor HR Services Pvt. Ltd. (the respondent/corporate debtor). The applicant claimed that it had advanced a friendly loan of ₹25,00,000/- to the corporate debtor on 30.11.2018 for a term of six months. The corporate debtor failed to repay the loan amount after the expiry of the term. The applicant sent reminder letters and a statutory recalling notice dated 10.08.2019, but the corporate debtor did not honor the payment. The corporate debtor acknowledged the debt but stated its inability to pay. The application was filed on 11.09.2019. The authorized share capital of the respondent company is ₹5,00,000/- and the paid-up

…

## Issues and analysis

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

**Ratio:** Section 7(5)(a) of the IBC states that the Adjudicating Authority may admit an

…

**Reasoning:** The Adjudicating Authority found that the occurrence of default was evidenced by the

…

**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

…

**Application:** The Adjudicating Authority applied Section 7(5)(a) of the IBC to the facts of

…

## Parties

- **Judges:** Ajay Kumar…; K.K. V…
- **Appellants:** Sentinel Consultan…
- **Respondents:** Nestor HR…

## Timeline

- **1956-01-01 — Company Incor…**: Nestor HR Services Private Limited is a Company incorporated on 07.06.2005 under the…
- **2018-11-30 — Loan Adv…**: The applicant advanced ₹25,00,000/- to 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/nestor-hr-services-pvt-ltd-cp-ib-no-523-chd-hry-2019-f3b49ab6