# In the matter of P Praful and Company Agency (India) Pvt. Ltd. C.P. (IB) No. 140-7-NCLT-AHM-2020

> NCLT judgment dated 2020-07-03. Citation: TCN-2020-NCLT-01067. OXYZO Financial Services Pvt. Ltd., the Financial Creditor, filed a petition under Section 7 of…

- **Court:** NCLT
- **Order date:** 3 Jul 2020
- **Citation:** TCN-2020-NCLT-01067
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/p-praful-and-company-agency-india-pvt-ltd-cp-ib-no-140-7-nclt-ahm-2020-fb6c921e

## Summary

### Background

OXYZO Financial Services Pvt. Ltd., the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 4 of the Insolvency and Bankruptcy Application to Adjudicating Authority Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against P. Praful & Company Agency (India) Pvt. Ltd., the Corporate Debtor. The Corporate Debtor was incorporated under the Companies Act, 1956. The Financial Creditor stated that the Corporate Debtor approached them for financial assistance in December 2017, leading to a Master Facilities Agreement on 2018-01-05 and an addendum on 2018-12-29. The Financial Creditor sanctioned a loan of Rs. 1,00,00,000/- to the Corporate Debtor on 2017-12-29 with 18% interest per

…

## Facts

OXYZO Financial Services Pvt. Ltd. (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against P. Praful & Company Agency (India) Pvt. Ltd. (Corporate Debtor). The Corporate Debtor approached the Financial Creditor in December 2017 for financial assistance, leading to a Master Facilities Agreement on 2018-01-05 and an addendum on 2018-12-29. The Financial Creditor sanctioned a loan of Rs. 1,00,00,000/- to the Corporate Debtor on 2017-12-29 with 18% interest per annum. As of 2019-09-30, the total amount of debt due was Rs. 1,05,68,424/-. A loan recall notice was issued on 2019-09-30, and a demand notice on 2019-10-31, but the Corporate Debtor failed to repay.

…

## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor under Section 7 of the Insolvency and …

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

…

**Reasoning:** The Adjudicating Authority reviewed the documents submitted by the Financial Creditor,

…

**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial creditor

…

**Application:** In this case, the Financial Creditor provided sufficient evidence of the debt

…

## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** OXYZO Financial…
- **Respondents:** P. Praful &…
- **Advocates:** Kunal Vai…; Deepa Kul…; +2 more

## Timeline

- **2017-12-01 — Corporate Debtor…**: The Corporate Debtor approached the…
- **2017-12-29 — Loan Sanc…**: The Financial Creditor sanctioned a loan of Rs. 1,00,00,000/- to the Corporate Debtor…

## 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/p-praful-and-company-agency-india-pvt-ltd-cp-ib-no-140-7-nclt-ahm-2020-fb6c921e