# In the matter of Rattan Spirit Private Limited

> NCLT judgment dated 2025-05-09. Citation: TCN-2025-NCLT-01075. The petition was filed by Hemraj Choudhary, the Financial Creditor, under Section 7 of the…

- **Court:** NCLT
- **Order date:** 9 May 2025
- **Citation:** TCN-2025-NCLT-01075
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rattan-spirit-private-limited-2613db61

## Summary

### Background

The petition was filed by Hemraj Choudhary, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Rattan Spirit Private Limited, the Corporate Debtor, for a default of Rs. 2,51,53,127/-.

## Facts

Hemraj Choudhary, the Financial Creditor, filed a petition under Section 7 of the IBC against Rattan Spirit Private Limited, the Corporate Debtor.

The Corporate Debtor defaulted on a payment of Rs. 2,51,53,127/-.

The Financial Creditor advanced a loan of Rs. 1,39,00,000/- to the Corporate Debtor in tranches through NEFT.

The oral understanding was that the loan would be repaid within 2 years with 18% interest per annum.

The Corporate Debtor acknowledged the debt in its financial statement for the year ended March 31, 2020.

The Corporate Debtor requested more time to make the payment, citing the Covid-19 pandemic.

The Financial Creditor issued a legal notice on 05.04.2023 calling upon the Corporate Debtor to repay the loan.

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## Issues and analysis

### Issue 1: Whether the petition is filed …

**Ratio:** The petition was filed within the

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**Reasoning:** The date of default was in April 2022, and

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**Interpretation:** The Adjudicating Authority interpreted the limitation period as three years

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**Application:** The Adjudicating Authority applied the limitation period to the facts of the

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## Parties

- **Judges:** Harnam Singh…; Ashish…
- **Appellants:** Hemraj Cho…
- **Respondents:** Rattan Spirit…
- **Other parties:** Prashant…; M/s Agarwal…; +2 more
- **Advocates:** Ankit Ki…

## Timeline

- **2019 — Loan Req…**: The Corporate Debtor approached the…
- **N/A — Loan Disbur…**: The Financial Creditor advanced a loan of 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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