# In the matter of Pentacle Infrastructures and Towers Private Limited CP (IB) No. 429-7-HDB-2020

> NCLT judgment dated 2021-08-05. Citation: TCN-2021-NCLT-01451. The case involves a petition filed by Hero Wiretex Limited (Financial Creditor) under Section 7…

- **Court:** NCLT
- **Order date:** 5 Aug 2021
- **Citation:** TCN-2021-NCLT-01451
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pentacle-infrastructures-and-towers-private-limited-cp-ib-no-429-7-hdb-2020-393f2e95

## Summary

### Background

The case involves a petition filed by Hero Wiretex Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Pentacle Infrastructure and Towers (P) Ltd (Corporate Debtor). The Financial Creditor sought initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, granting moratorium, and appointment of Interim Resolution Professional. The Corporate Debtor had taken a loan of Rs. 8,86,16,413/- from the Financial Creditor at an interest rate of 15% per annum for a period of 20 months but failed to repay any installments.

## Facts

Hero Wiretex Limited (Financial Creditor) filed a petition against Pentacle Infrastructure and Towers (P) Ltd (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor and Corporate Debtor were incorporated under the Companies Act, 1956. The Corporate Debtor took a loan of Rs. 8,86,16,413/- from the Financial Creditor at an interest rate of 15% per annum for 20 months. The Corporate Debtor failed to repay any installment. As of 31/05/2020, the total outstanding amount, including principal and interest, was Rs. 11,74,16,747/-. The Corporate Debtor claimed financial difficulties and requested the Financial Creditor to waive the interest portion, which was rejected. The Financial Creditor filed the petition seeking initiation

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## 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

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**Reasoning:** The Adjudicating Authority considered the provisions of Section 7 of the Code and the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** In this case, the Financial Creditor demonstrated that the Corporate Debtor had

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## Parties

- **Judges:** Shrimadan…; Veera Brahma Rao…
- **Appellants:** Hero Wiretex…
- **Respondents:** Pentacle Infrastru…

## Timeline

- **1991-02-11 — Incorporation of…**: Hero Wiretex Limited (Financial Creditor) was…
- **2007-11-08 — Incorporation of…**: Pentacle Infrastructure and Towers (P) Ltd (Corporate Debtor) was incorporated under 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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