# In the matter of Pratibha Skyscrapers Private Limited CP (IB) - 4230-I&BP-MB-2019

> NCLT judgment dated 2020-01-20. Citation: TCN-2020-NCLT-02270. The case involves an application filed by Kai Bhimrao Jyoti Chavan Multistate Co-Op Credit…

- **Court:** NCLT
- **Order date:** 20 Jan 2020
- **Citation:** TCN-2020-NCLT-02270
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pratibha-skyscrapers-private-limited-cp-ib-4230-ibp-mb-2019-1a66bcda

## Summary

### Background

The case involves an application filed by Kai Bhimrao Jyoti Chavan Multistate Co-Op Credit Society Ltd. (the Petitioner) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Pratibha Skyscrapers Private Limited (the Corporate Debtor). The Petitioner sought the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to a default in repayment of facilities granted to the Corporate Debtor. The Corporate Debtor availed credit facilities from the Petitioner, including a short-term loan, and defaulted on repayments.

## Facts

Kai Bhimrao Jyoti Chavan Multistate Co-Op Credit Society Ltd. (Petitioner) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Pratibha Skyscrapers Private Limited (Corporate Debtor). The Petitioner sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to a default in repayment of facilities. The Corporate Debtor availed credit facilities from the Petitioner, including a short-term loan of Rs. 1,55,55,000 on 31.03.2017 for 12 months, with interest at 12% p.a. Mr. Mahadev B. Gondhale, a director of the Corporate Debtor, provided a personal guarantee. The Corporate Debtor executed a promissory note on 31.03.2017 for Rs. 1,55,55,000. The Corporate Debtor defaulted on 01.02.2018. The total outstanding was Rs.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in repaying the loans availed from the Petitioner, …

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

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**Reasoning:** The NCLT reasoned that the Corporate Debtor had defaulted in repaying the loans based on

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

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**Application:** The ratio and reasoning were applied to the facts by considering the loan

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## Parties

- **Judges:** SUCHITRA KANUPARTH…; V. Nallasen…; +1 more
- **Appellants:** Kai Bhimrao Jyoti…
- **Respondents:** Pratibha Skyscrape…

## Timeline

- **2017-03-31 — Loan Application and…**: The Corporate Debtor submitted a loan application for Rs. 1,55,55,000 and entered into a…
- **2018-02-01 — Default…**: The Corporate Debtor committed default in repayment of facilities granted by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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