# In the matter of Orchid Textiles Private Limited CP (IB) No.52-Chd-Pb-2021

> NCLT judgment dated 2022-07-04. Citation: TCN-2022-NCLT-04614. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with…

- **Court:** NCLT
- **Order date:** 4 Jul 2022
- **Citation:** TCN-2022-NCLT-04614
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/orchid-textiles-private-limited-cp-ib-no52-chd-pb-2021-1cb6d6b6

## Summary

### Background

The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Ms. Manju Gupta, the Petitioner/Financial Creditor, to initiate the Corporate Insolvency Resolution Process (CIRP) against Orchid Textiles Private Limited, the Respondent/Corporate Debtor.

## Facts

The corporate debtor, Orchid Textiles Private Limited, was incorporated on 13.04.2006 and is in the textiles business.

In 2014, the corporate debtor approached the petitioner, Manju Gupta, to secure a loan of Rs. 60,00,000/- until 01.04.2018.

A loan agreement was entered into on 12.12.2014 between the petitioner and the corporate debtor.

The corporate debtor failed to pay even a single installment of interest as per the terms of the agreement.

A supplementary MOU was entered into on 01.04.2018 for a further period of 1 year, i.e., till 31.03.2019, with interest at 18% per annum.

On 01.07.2019, the petitioner approached the Arbitrator to get the settlement done.

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## Issues and analysis

### Issue 1: Whether the present application …

**Ratio:** The application was

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**Reasoning:** The date of default is 01.04.2019, and

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**Interpretation:** The application was filed within the

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**Application:** The Adjudicating Authority determined that the application was filed within the

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Manju G…
- **Respondents:** Orchid Textiles…
- **Other parties:** Neeraj B…; Pawan S…
- **Advocates:** Rakesh S…; Niharika…

## Timeline

- **2014-XX-XX — Loan Sec…**: Corporate debtor approached the petitioner…
- **2014-12-12 — Loan Agre…**: Loan agreement entered into 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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