# In the matter of Phoenix Erectors Private Limited CP (IB) -94-I&BP-MB-2019

> NCLT judgment dated 2019-04-12. Citation: TCN-2019-NCLT-03935. Innovative Technomics Private Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Apr 2019
- **Citation:** TCN-2019-NCLT-03935
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/phoenix-erectors-private-limited-cp-ib-94-ibp-mb-2019-64e63c1a

## Summary

### Background

Innovative Technomics Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Phoenix Erectors Private Limited. The basis for the petition was the Corporate Debtor's default in repaying a loan of Rs. 82,64,098/-, inclusive of interest at 11% p.a., granted to them by the Petitioner. The Petitioner and Corporate Debtor entered into a Memorandum of Understanding (MOU) on 16.04.2017, wherein the Petitioner agreed to provide an inter-corporate loan of Rs. 80,00,000/- to the Corporate Debtor, repayable with interest at 11% p.a. The Petitioner disbursed the amount through RTGS/cheques. The statement of account of the Corporate Debtor in the books of the

…

## Facts

Innovative Technomics Private Limited (the Petitioner) sought to initiate Corporate Insolvency Resolution Process (CIRP) against Phoenix Erectors Private Limited (the Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Petitioner and the Corporate Debtor entered into a Memorandum of Understanding (MOU) on 16.04.2017, where the Petitioner agreed to provide an inter-corporate loan of Rs. 80,00,000/- to the Corporate Debtor, repayable with interest at 11% p.a. The Petitioner disbursed the loan amount via RTGS/cheques. The Corporate Debtor defaulted in repaying the loan, with a balance of Rs. 82,64,098/- receivable as on 31.03.2018, according to the Petitioner's statement of account. The Petitioner sent a letter dated 31.03.2018 acknowledging

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in repayment of the loan granted by the Petitioner, …

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

…

**Reasoning:** The Adjudicating Authority, upon reviewing the documents filed by the Creditor, found

…

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

…

**Application:** In this case, the Petitioner provided evidence of the loan agreement,

…

## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Innovative…
- **Respondents:** Phoenix Erectors…

## Timeline

- **2017-04-16 — MOU Exec…**: Petitioner and Corporate Debtor entered into a Memorandum of Understanding (MOU) where…
- **2018-03-31 — Acknowledgement of…**: The Petitioner by a letter dated…

## 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/phoenix-erectors-private-limited-cp-ib-94-ibp-mb-2019-64e63c1a