# In the matter of RDC Motor Private Limited IBA-1327-2019

> NCLT judgment dated 2021-04-30. Citation: TCN-2021-NCLT-02241. This case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 Apr 2021
- **Citation:** TCN-2021-NCLT-02241
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rdc-motor-private-limited-iba-1327-2019-59603449

## Summary

### Background

This case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by eight financial creditors against M/s. RDC Motor Private Limited, the corporate debtor. The applicants claim that the corporate debtor defaulted on debt repayment. Each applicant provided financial loans to the corporate debtor, supported by demand promissory notes and bank statements. The corporate debtor acknowledged signing the promissory notes and making partial payments, but disputed the outstanding dues. The applicants jointly filed the application for initiating Corporate Insolvency Resolution Process (CIRP).

## Facts

Eight financial creditors, including Pankaj P Jain, Priya P Jain, Lalit Shah HUF, Kishanlal Rajbeesh Kumkar HUF, Hanja Bai, Ashika N Shah, Bhagyawanthi Bai, and Sri Sankeshwara Holding, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. RDC Motor Private Limited, the corporate debtor. Each creditor claimed to have extended loans to the corporate debtor, supported by demand promissory notes and bank statements showing the disbursement of funds. The corporate debtor acknowledged signing the demand promissory notes and making partial payments. However, the creditors claimed that the 7th, 8th, 9th, and 10th installments were not paid. The total amount claimed by the creditors was Rs. 2,50,00,000/-. The corporate debtor disputed

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## Issues and analysis

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

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court considered the arguments presented by the corporate debtor regarding the

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**Interpretation:** Section 7 of the IBC is interpreted to allow multiple financial creditors to

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

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** Pankaj P…
- **Respondents:** M/s. RDC MOTOR…

## Timeline

- **2012-09-04 — Incorporation of…**: M/s. RDC Motor Private…
- **2020-02-13 — Corporate Debtor Files…**: The Corporate Debtor filed its…

## 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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