# In the matter of Raipur Hydro Power Pvt. Ltd. CP (IB) No. 35-Chd-HP-2017

> NCLT judgment dated 2017-07-11. Citation: TCN-2017-NCLT-00742. The case involves a petition filed by Seashells Infrastructures Pvt. Ltd. (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 11 Jul 2017
- **Citation:** TCN-2017-NCLT-00742
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/raipur-hydro-power-pvt-ltd-cp-ib-no-35-chd-hp-2017-40f1635c

## Summary

### Background

The case involves a petition filed by Seashells Infrastructures Pvt. Ltd. (Financial Creditor) against Rajpur Hydro Power Pvt. Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the corporate insolvency resolution process. The Financial Creditor claims that the Corporate Debtor defaulted on a loan agreement. The Corporate Debtor's registered office falls within the territorial jurisdiction of the Chandigarh Bench of the National Company Law Tribunal.

## Facts

Seashells Infrastructures Pvt. Ltd. (Financial Creditor) filed a petition against Rajpur Hydro Power Pvt. Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor claimed that the Corporate Debtor borrowed ₹20,00,000/- based on a loan agreement dated 03.03.2015, with a repayment deadline of 31.03.2016. The agreement stipulated an 18% per annum compounded monthly interest in case of default. The loan was disbursed via cheque No. 495137 dated 03.03.2015. While the Corporate Debtor allegedly executed a promissory note, it was unstamped and deemed inadmissible. A letter dated 20.01.2017 from the Corporate Debtor's Managing Director, Mr. T. Rajshekar, admitted an outstanding balance of ₹10,00,000/- plus interest. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, deals with the initiation of the

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**Reasoning:** The court noted that the initial application had defects, but these were subsequently

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**Interpretation:** Section 7 requires the Adjudicating Authority to determine if a default exists

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**Application:** The court applied Section 7 by examining the loan agreement, the Corporate

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## Parties

- **Judges:** Mr.Justice…
- **Appellants:** Seashells…
- **Respondents:** Rajpur Hydro…

## Timeline

- **2015-03-03 — Loan Agreeme…**: Date of the loan agreement between Seashells Infrastructures Pvt. Ltd. and Rajpur Hydro…
- **2016-03-31 — Repayment D…**: Original deadline for…

## 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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