# In the matter of Pami Metals Private Limited C.P.(IB) No. 64-KB-2021

> NCLT judgment dated 2021-11-03. Citation: TCN-2021-NCLT-00594. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 3 Nov 2021
- **Citation:** TCN-2021-NCLT-00594
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pami-metals-private-limited-cpib-no-64-kb-2021-82d99039

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by M/s Sreenath Finvest Pvt. Ltd., M/s Kamna Commercial Pvt. Ltd., and M/s Chiki Finance Pvt. Ltd. (Financial Creditors) against M/s Pami Metals Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Financial Creditors claimed a total default amount of Rs. 1,77,50,877/- inclusive of interest. The Corporate Debtor admitted to financial stress and inability to repay the debts.

## Facts

M/s Sreenath Finvest Pvt. Ltd., M/s Kamna Commercial Pvt. Ltd., and M/s Chiki Finance Pvt. Ltd. (Financial Creditors) jointly filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Pami Metals Private Limited (Corporate Debtor). The Financial Creditors claimed that they had granted a loan to the Corporate Debtor, and the Corporate Debtor defaulted on repayments. The total amount in default, including interest, was Rs. 1,77,50,877.71 as of January 31, 2021. The Corporate Debtor admitted to making a partial payment of Rs. 15,00,000 to Financial Creditor No. 1 on March 31, 2015, but no payments were made to Financial Creditors No. 2 and No. 3. The Corporate Debtor cited financial difficulties due to the pandemic and operational

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## Issues and analysis

### Issue 1: Whether the Financial Creditors successfully proved that the amount mentioned in the petition was …

**Ratio:** The legal principle applied is that if the financial creditors can demonstrate that a

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**Reasoning:** The court reasoned that based on the pleadings and arguments, the Financial Creditors

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**Interpretation:** This involves interpreting Section 7 of the IBC, which allows financial

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**Application:** The court applied this principle to the facts by examining the loan agreements,

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** M/s Sreenath…
- **Respondents:** M/s Pami Metals…

## Timeline

- **2021-01-22 — Resolutions passed by…**: Petitioners no.2 and 3 passed resolutions authorizing petitioner no.1 to file application…
- **2021-06-23 — Reply affidavit filed…**: The Corporate Debtor filed a reply affidavit deposing that the application suffers from…

## 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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