# In the matter of Safetec Healthcare & Hygiene Pvt. Ltd. CP (IB) -1896-I&B-MB-2019

> NCLT judgment dated 2020-01-17. Citation: TCN-2020-NCLT-02286. Prafulla Shah, the petitioner, filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 17 Jan 2020
- **Citation:** TCN-2020-NCLT-02286
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/safetec-healthcare-hygiene-pvt-ltd-cp-ib-1896-ib-mb-2019-65958799

## Summary

### Background

Prafulla Shah, the petitioner, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking the Corporate Insolvency Resolution Process (CIRP) of Safetec Healthcare & Hygiene Pvt. Ltd., the Corporate Debtor. The application was based on the Corporate Debtor's alleged default in repaying a loan originally granted by the petitioner's deceased husband, Mr. Prakash G. Shah. The Corporate Debtor had executed promissory notes in favor of the deceased for the loan amount. After the death of the original creditor, his wife, Prafulla Shah, filed the petition.

## Facts

Mr. Prakash G. Shah, the deceased husband of the petitioner Prafulla Shah, granted a loan of Rs. 50,00,000/- to Safetec Healthcare & Hygiene Pvt. Ltd., the Corporate Debtor, around May 2013. The Corporate Debtor executed a promissory note dated 28/06/2013 for Rs. 50,00,000/- with interest at 1% per month. The Corporate Debtor paid Rs. 3,20,000/- as interest on 01/02/2014 for the period from 19/06/2013 to 31/03/2014. Another promissory note dated 25/05/2016 was executed. A demand notice dated 10/10/2018 was sent to the Corporate Debtor for Rs. 71,15,616/-, including principal and interest. The Corporate Debtor did not reply to the demand notice or make any payment. The total amount claimed to be in default is Rs. 80,49,315/-, including principal and interest till

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## Issues and analysis

### Issue 1: Whether the petition filed by Prafulla Shah, the …

**Ratio:** The wife is the immediate successor after the death of her husband and therefore, she is

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**Reasoning:** The court reasoned that the wife is the immediate successor after the death of her

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**Interpretation:** This interprets the legal standing of a successor, specifically a wife, to

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**Application:** The ratio and reasoning are applied to the specific fact that Prafulla Shah is

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Appellants:** Prafulla…
- **Respondents:** Safetec Healthcare…

## Timeline

- **2013-05-01 — Loan Req…**: Director of Corporate Debtor requested…
- **2013-06-28 — Promissor…**: Promissory note for Rs. 50,00,000/-…

## 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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