# In the matter of Rajit Rolling Mills Private Limited CP (IB) - 4664-I&B-MB-2019

> NCLT judgment dated 2020-02-25. Citation: TCN-2020-NCLT-01821. The case involves an application filed by Sanjay Ramkrishan Mantri, the Financial Creditor, to…

- **Court:** NCLT
- **Order date:** 25 Feb 2020
- **Citation:** TCN-2020-NCLT-01821
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rajit-rolling-mills-private-limited-cp-ib-4664-ib-mb-2019-0e34fdaa

## Summary

### Background

The case involves an application filed by Sanjay Ramkrishan Mantri, the Financial Creditor, to initiate the Corporate Insolvency Resolution Process (CIRP) against Rajit Rolling Mills Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor claims that the Corporate Debtor defaulted in repaying a loan amount borrowed from them.

## Facts

The Financial Creditor, Sanjay Ramkrishan Mantri, provided a business loan of Rs. 38,00,000 to the Corporate Debtor, Rajit Rolling Mills Private Limited, as per a loan agreement dated 2016-03-30. The agreement stipulated a 0% interest rate. The Corporate Debtor also executed a promissory note on the same date, promising repayment by 2019-03-18. The Corporate Debtor defaulted on the repayment. The Financial Creditor sent multiple letters requesting repayment, and the Corporate Debtor acknowledged the debt and promised to repay it by 2019-04-30, but failed to do so. The Director of the Corporate Debtor admitted the liability and default in open court, citing financial difficulties. The financial creditor provided ledger accounts as evidence of the debt. The corporate

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## Issues and analysis

### Issue 1: Whether the petition fulfills all the requisite conditions to admit a petition under Section 7 of …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for

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**Reasoning:** The court noted that the petitioner successfully proved their case, and the corporate

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**Interpretation:** Section 7 of the IBC is interpreted to mean that if the Adjudicating Authority

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**Application:** The court applied Section 7 to the facts of the case, finding that the

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Appellants:** Sanjay Ramkrishan…
- **Respondents:** Rajit Rolling…

## Timeline

- **2016-03-30 — Loan Agreement and…**: Financial Creditor provided a business loan of Rs. 38,00,000 to the Corporate Debtor, and…
- **2019-03-18 — Due Date of Promissory…**: The date by which the Corporate Debtor was supposed to repay the loan amount as per 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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