# In the matter of RSJ Developers Private Limited IB-1017-(ND)-2020

> NCLT judgment dated 2021-10-01. Citation: TCN-2021-NCLT-00911. M/s Aone Greenfield Pvt. Ltd. filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 1 Oct 2021
- **Citation:** TCN-2021-NCLT-00911
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rsj-developers-private-limited-ib-1017-nd-2020-84da22e4

## Summary

### Background

M/s Aone Greenfield Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s RSJ Developers Pvt. Ltd. The application was based on the alleged default by the Respondent in settling a debt of Rs. 5,59,41,232/-, comprising a principal amount of Rs. 3,85,00,000/- and interest of Rs. 1,74,41,232/-. The Applicant claimed that the Respondent had requested a loan of Rs. 4,00,00,000/- on 01.03.2016 for its daily operations, and the Applicant agreed to lend Rs. 3,85,00,000/- with 12% per annum interest. A Business Loan Agreement was executed on 14.03.2016, with the loan repayable by 31.01.2020. The Applicant disbursed Rs. 2,50,00,000/- on 14.03.2016 and Rs. 60,00,000/-

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## Facts

On 01.03.2016, RSJ Developers Private Limited (the Respondent) requested a loan of Rs. 4,00,00,000 from Aone Greenfield Pvt. Ltd. (the Applicant) for daily operations. The Applicant agreed to lend Rs. 3,85,00,000 with a 12% per annum interest rate. A Business Loan Agreement was executed on 14.03.2016, stipulating repayment by 31.01.2020. The Applicant disbursed Rs. 2,50,00,000 on 14.03.2016, Rs. 60,00,000 on 28.03.2016, Rs. 45,00,000 on 29.06.2016, and Rs. 30,00,000 on 20.01.2017. On 31.01.2020, the Applicant requested repayment of Rs. 3,85,00,000 plus interest. The Respondent, via letter dated 04.02.2020, expressed inability to pay the principal and interest of Rs. 1,74,41,232. The total default amounted to Rs. 5,59,41,232. The Respondent failed to appear before the

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is complete and …

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

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**Reasoning:** The Tribunal examined the documents and arguments presented by the Applicant and found

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**Interpretation:** Section 7 provides the framework for a financial creditor to trigger the

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**Application:** The application filed by M/s Aone Greenfield Pvt. Ltd. was found to be

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## Parties

- **Judges:** SH. P.S.N.…; Sh. Hemant Kumar…
- **Appellants:** M/s Aone GREENFIEL…
- **Respondents:** RSJ DEVELOPERS…

## Timeline

- **2016-03-01 — Loan Req…**: RSJ Developers requested a loan of Rs.…
- **2016-03-14 — Loan Agre…**: Business Loan Agreement executed between Aone Greenfield and RSJ Developers for 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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