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

> NCLT judgment dated 2017-11-14. Citation: TCN-2017-NCLT-00206. 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-00206
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sangamayug-commercial-pvt-ltd-cp-ib-no-201-kb-2017-602a4fab

## 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 repayments, 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 these repayments, Rs. 29,00,000 remained outstanding. Sunrise Stock Broking sent letters and emails between January 2, 2017, and January 11, 2017, demanding repayment. A legal notice was issued on January 19, 2017. Sangamayug Commercial failed to repay the outstanding amount, leading Sunrise Stock Broking to file an application under Section 7 of the Insolvency and Bankruptcy Code, 2016.

## 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, along with Rule 4 of the

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**Reasoning:** The court examined the documents provided by the financial creditor, including bank

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**Interpretation:** Section 7 requires the applicant to prove the existence of a financial debt and

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**Application:** The court found that the financial creditor had provided sufficient evidence to

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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 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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