# In the matter of Sai Precious Traexim Pvt. Ltd. (ib) 2845 (ND)-2019

> NCLT judgment dated 2020-06-08. Citation: TCN-2020-NCLT-01223. The application was filed by Deepraj Investments Pvt. Ltd., the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 8 Jun 2020
- **Citation:** TCN-2020-NCLT-01223
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sai-precious-traexim-pvt-ltd-ib-2845-nd-2019-fcdc895f

## Summary

### Background

The application was filed by Deepraj Investments Pvt. Ltd., the Financial Creditor, under Section 7 of the IBC, 2016, against Sai Precious Traexim Private Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor defaulted on a loan of Rs. 1,00,00,000/-. The Corporate Debtor argued that the Financial Creditor did not disburse the entire loan amount and that the Corporate Debtor had already filed complaints against the Financial Creditor and Rajeev Aggarwal for alleged fraudulent activities.

## Facts

Deepraj Investments Pvt. Ltd. (Financial Creditor) filed an application under Section 7 of the IBC, 2016, against Sai Precious Traexim Private Limited (Corporate Debtor) for defaulting on a loan. The Corporate Debtor approached the Financial Creditor on 19.01.2019 requesting a loan of Rs. 1,00,00,000/-. The Financial Creditor sanctioned the loan on 23.01.2019. A loan agreement was signed on 29.01.2019. The Financial Creditor claims to have disbursed Rs. 35,00,000/- to two creditors of the Corporate Debtor and Rs. 65,00,000/- to the Corporate Debtor's bank account between 30.01.2019 and 25.02.2019. The Corporate Debtor issued post-dated cheques for interest and principal repayment, which were dishonored. The Financial Creditor initiated criminal proceedings under

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## Issues and analysis

### Issue 1: Whether the application under Section 7 …

**Ratio:** Section 7 of the IBC, 2016, allows a financial creditor to file an application for

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**Reasoning:** The court considered the submissions of both parties and found that the Corporate Debtor

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**Interpretation:** Section 7 provides the legal basis for a financial creditor to initiate CIRP

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

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## Parties

- **Judges:** Sh. Abni Ranjan…; Sh. Kapal Kumar…
- **Appellants:** M/s Deepraj…
- **Respondents:** Sai Precious…

## Timeline

- **2019-01-19 — Loan Appli…**: Corporate Debtor approached Financial…
- **2019-01-23 — Loan San…**: Financial Creditor…

## 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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