# In the matter of Real Value Promoters Private Limited IBA-821-2020

> NCLT judgment dated 2021-12-15. Citation: TCN-2021-NCLT-00160. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Dec 2021
- **Citation:** TCN-2021-NCLT-00160
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/real-value-promoters-private-limited-iba-821-2020-9a3e11c5

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by M/s. H.S. Syndicate, a financial creditor, against Real Value Promoters Private Limited, the corporate debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The financial creditor claims a debt of Rs. 1,10,00,000/-. The corporate debtor had previously entered into a Memorandum of Compromise (MoC) with the financial creditor on 11.12.2019, agreeing to repay Rs. 1,10,00,000/- in five installments. However, the corporate debtor defaulted on these installments, leading to the current application.

## Facts

M/s. H.S. Syndicate, a partnership firm, extended a loan to Real Value Promoters Private Limited. The initial loan was disbursed by M/s. Kochar Finance on 24.04.2008, amounting to Rs. 50,00,000/-, with Rs. 44,00,000/- given to the Corporate Debtor and Rs. 6,00,000/- deducted as interest. The Corporate Debtor was to repay the loan in 10 equated monthly installments of Rs. 5,00,000/- from 25.05.2008 to 25.02.2009. The Corporate Debtor delayed payments, and eventually stopped making payments to M/s. Kochar Finance. The Corporate Debtor paid Rs. 29,00,000/- towards the principal and Rs. 2,42,000/- towards interest during the default period (October 2008 to August 2010). On 13.08.2010, the Financial Creditor took over the loan facility. As of 13.08.2010, Rs. 21,00,000/- was

…

## Issues and analysis

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

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate CIRP against a

…

**Reasoning:** The Tribunal considered the evidence presented by the Financial Creditor, including the

…

**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

…

**Application:** The Tribunal found that the Financial Creditor had established the existence of

…

## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** M/s. H.S.Sy…
- **Respondents:** Real Value…

## Timeline

- **2008-04-24 — Loan Disbur…**: M/s. Kochar Finance disbursed Rs.…
- **2008-05-25 — Start of Re…**: Corporate Debtor was to start repaying…

## 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/real-value-promoters-private-limited-iba-821-2020-9a3e11c5