# In the matter of Power Card India Private Limited IBA-454-2020

> NCLT judgment dated 2021-09-02. Citation: TCN-2021-NCLT-01221. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 2 Sept 2021
- **Citation:** TCN-2021-NCLT-01221
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/power-card-india-private-limited-iba-454-2020-71ebd5ce

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Sri Ambey Investments, the Financial Creditor, against Power Car India Private Limited, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claims a financial debt of Rs. 21,25,000/- which the Corporate Debtor allegedly defaulted on. The application seeks to admit the case, declare a moratorium, and appoint an Interim Resolution Professional (IRP).

## Facts

Sri Ambey Investments, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Power Car India Private Limited, the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a financial debt of Rs. 21,25,000/-, evidenced by a promissory note dated 29.05.2018, where the Corporate Debtor agreed to repay the principal amount with 18% interest per annum within 10 months. The Corporate Debtor made a payment of Rs. 5,00,000/- on 02.08.2018 but failed to repay the remaining amount. The Financial Creditor sent legal notices on 09.11.2019 and 23.11.2019. The Corporate Debtor did not appear in the proceedings despite the Financial Creditor effecting paper

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has proven the existence of a 'debt' and 'default' as defined under …

**Ratio:** The legal principle is that for an application under Section 7 of the IBC to be admitted,

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**Reasoning:** The Tribunal examined the documents submitted by the Financial Creditor, including the

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**Interpretation:** The interpretation of 'financial debt' under Section 5(8)(c) of the IBC

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**Application:** In this case, the Financial Creditor provided sufficient evidence to prove that

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** M/s. Sri Ambey…
- **Respondents:** M/s. Power Car…

## Timeline

- **2018-05-29 — Promissory No…**: Corporate Debtor executed a promissory note…
- **2018-08-02 — Partial P…**: Corporate Debtor paid Rs.…

## 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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