# In the matter of Rathi Graphic Technologies Limited Company Petition (IB)No. 325-ALD-2019

> NCLT judgment dated 2020-02-03. Citation: TCN-2020-NCLT-02097. The case involves a petition filed by Exim Scrips Dealers Pvt. Ltd., the financial creditor,…

- **Court:** NCLT
- **Order date:** 3 Feb 2020
- **Citation:** TCN-2020-NCLT-02097
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rathi-graphic-technologies-limited-company-petition-ibno-325-ald-2019-a6e5b65e

## Summary

### Background

The case involves a petition filed by Exim Scrips Dealers Pvt. Ltd., the financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Rathi Graphics Technologies Ltd., the corporate debtor, due to its inability to liquidate its financial debt. The corporate debtor had taken a loan of Rs. 95,00,000 from the financial creditor on 17.07.2012, which was repayable on demand with interest. The corporate debtor defaulted on payments after 31.03.2018.

## Facts

Exim Scrips Dealers Pvt. Ltd. (financial creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Rathi Graphics Technologies Ltd. (corporate debtor). A loan agreement dated 17.07.2012 was entered into between the parties, where the financial creditor disbursed Rs. 95,00,000 to the corporate debtor. The loan was repayable on demand with interest at 9% p.a. payable monthly, with an additional 2% p.a. on inter-corporate deposits. The corporate debtor made payments until 31.03.2018 but defaulted thereafter. The financial creditor issued notices on 10.04.2018 and 30.04.2018, to which the corporate debtor replied on 15.05.2018, admitting liability and requesting time for payment. No payment was received until 10.02.2019. The date of

…

## Issues and analysis

### Issue 1: Whether there is a duly …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 requires the establishment of a

…

**Reasoning:** The court examined the loan agreement and the disbursed amount of Rs. 95,00,000 to

…

**Interpretation:** The existence of a loan agreement and disbursement of funds constitute a

…

**Application:** The loan agreement dated 17.07.2012 and the disbursement of Rs. 95,00,000

…

## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** EXIM SCRIPS…
- **Respondents:** Rathi Graphic…

## Timeline

- **2012-07-17 — Loan Agre…**: Loan facility agreement entered into between Exim Scrips Dealers Pvt. Ltd. and Rathi…
- **2018-03-31 — Default in…**: Rathi Graphics Technologies Ltd. defaulted in…

## 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/rathi-graphic-technologies-limited-company-petition-ibno-325-ald-2019-a6e5b65e