# In the matter of Satra Property Developers Pvt. Ltd. CP (IB) 4464-MB-2019

> NCLT judgment dated 2020-08-10. Citation: TCN-2020-NCLT-00871. Gajendra Investments Limited filed a Company Petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 10 Aug 2020
- **Citation:** TCN-2020-NCLT-00871
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/satra-property-developers-pvt-ltd-cp-ib-4464-mb-2019-f527403d

## Summary

### Background

Gajendra Investments Limited filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Satra Property Developers Private Limited, claiming default on a principal amount of Rs. 15,76,00,000/- between September 2017 and September 2018, along with interest. The Financial Creditor claimed a total amount of Rs. 18,86,53,658/- as of 18.10.2019. The Corporate Debtor contested the petition, arguing the absence of a financial contract and disputing the nature of the transaction as a loan. The Adjudicating Authority considered the arguments and evidence presented by both parties.

## Facts

Gajendra Investments Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Satra Property Developers Private Limited (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed that it had lent Rs. 15,76,00,000/- to the Corporate Debtor in 11 installments between September 2017 and September 2018. The Corporate Debtor allegedly defaulted on payments, leading to a total claim of Rs. 18,86,53,658/- as of 18.10.2019, including interest. The Financial Creditor submitted bank statements, emails, and the Corporate Debtor's financial statements as evidence. The Corporate Debtor argued that there was no financial contract, and the funds were advanced

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of a …

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

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**Reasoning:** The Adjudicating Authority considered the evidence presented by the Financial Creditor,

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**Interpretation:** The term 'debt' includes a financial debt, which is a debt along with interest,

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**Application:** The Adjudicating Authority found that the Corporate Debtor was in default of a

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## Parties

- **Judges:** Janab Mohammed…; Ravikumar…; +1 more
- **Appellants:** Gajendra Investmen…
- **Respondents:** Satara Property…; Satara Property…

## Timeline

- **2017-09-01 — Loan Disbursem…**: The Financial Creditor started disbursing…
- **2018-09-01 — Loan Disburse…**: The Financial Creditor completed disbursing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(6) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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