# In the matter of Sangamayug Commercial Pvt. Ltd. CP (IB) No. 201-KB-2017

> NCLT judgment dated 2017-11-14. Citation: TCN-2017-NCLT-00208. Sunrise Stock Broking Private Limited filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 14 Nov 2017
- **Citation:** TCN-2017-NCLT-00208
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sangamayug-commercial-pvt-ltd-cp-ib-no-201-kb-2017-325bbdfc

## Summary

### Background

Sunrise Stock Broking Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Sangamayug Commercial Private Limited, the Corporate Debtor, due to a default in repayment of a loan. Sunrise Stock Broking had extended financial assistance to Sangamayug Commercial, and despite partial repayment, a significant amount remained outstanding. The financial creditor issued demand notices, but the corporate debtor failed to make the required payments, leading to the insolvency petition.

## Facts

Sunrise Stock Broking Private Limited extended financial assistance of Rs. 75,00,000 to Sangamayug Commercial Private Limited through RTGS on November 7, 2016. Sangamayug Commercial partially repaid Rs. 46,00,000, with Rs. 35,00,000 paid on November 18, 2016, and Rs. 11,00,000 paid on December 3, 2016. Despite repeated requests and demand notices issued by Sunrise Stock Broking in January 2017, Sangamayug Commercial defaulted on the remaining Rs. 29,00,000. Sunrise Stock Broking then filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The corporate debtor did not appear to defend the case.

## Issues and analysis

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

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, specifies the requirements for

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**Reasoning:** The court found that the financial creditor had provided sufficient evidence, including

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**Interpretation:** Section 7 of the IBC requires the applicant to demonstrate the existence of a

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**Application:** In this case, Sunrise Stock Broking provided bank statements showing the

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Appellants:** Sunrise Stock…
- **Respondents:** Sangamayug…

## Timeline

- **2016-11-07 — Financial Assistance…**: Sunrise Stock Broking Private Limited extended financial assistance of Rs. 75,00,000 to…
- **2016-11-18 — Partial Rep…**: Sangamayug Commercial Private Limited partly paid Rs. 35,00,000 to Sunrise Stock Broking…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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