# In the matter of RCBS Realty Private Limited CP(IB) No. 1062-KB-2019

> NCLT judgment dated 2019-12-13. Citation: TCN-2019-NCLT-00175. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 13 Dec 2019
- **Citation:** TCN-2019-NCLT-00175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rcbs-realty-private-limited-cpib-no-1062-kb-2019-09b32df6

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the Financial Creditor, Dipak Bhadra, against the Corporate Debtor, RCBS Realty Private Limited, for initiating the Corporate Insolvency Resolution Process (CIRP). The financial creditor claimed a default amount of Rs. 42,77,479/-. The corporate debtor contended that the debt was barred by limitation.

## Facts

Dipak Bhadra, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against RCBS Realty Private Limited, the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a default amount of Rs. 42,77,479/-. A loan of Rs. 28 lakhs was given by the Financial Creditor to the Corporate Debtor on 20.01.2016, which was to be repaid after six months. The default occurred on 21.07.2016. The Corporate Debtor contended that the debt was barred by limitation as the petition was filed on 05.07.2019, more than three years after the disbursement date. The Financial Creditor argued that the debt was payable after six months, making the due date 21.07.2019, and the petition

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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:** The application under Section 7 of the IBC is maintainable if the debt is not barred by

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**Reasoning:** The court considered the submissions from both sides and the material on record. The

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** The court found that the application filed by the Financial Creditor was

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Dipak B…
- **Respondents:** RCBS Realty…

## Timeline

- **2016-01-20 — Loan Disbur…**: The Financial Creditor gave a loan of…
- **2016-07-21 — Default…**: The Corporate Debtor…

## 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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