# In the matter of SDU Travels Private Limited C.P. (IB) No. 12-BB-2021

> NCLT judgment dated 2022-01-06. Citation: TCN-2022-NCLT-04528. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 6 Jan 2022
- **Citation:** TCN-2022-NCLT-04528
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sdu-travels-private-limited-cp-ib-no-12-bb-2021-0403b2bf

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Park View Developers Private Limited (Financial Creditor/Petitioner) against SDU Travels Private Limited (Corporate Debtor/Respondent) to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had approached the Financial Creditor for a loan of Rs. 1,87,50,000, secured against fixed deposits. The Corporate Debtor defaulted on payments, leading to the invocation of collateral security by Canara Bank, causing jeopardy to the Financial Creditor. The Financial Creditor issued a demand notice and approached an Information Utility for details of default.

## Facts

Park View Developers Private Limited (Financial Creditor) filed a petition against SDU Travels Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP. The Corporate Debtor, incorporated on September 22, 2010, with a registered office in Bengaluru, had approached the Financial Creditor for a loan of Rs. 1,87,50,000. The loan was to be secured against fixed deposits amounting to Rs. 2,50,00,000 with Canara Bank. A board resolution dated November 1, 2017, authorized Mr. Sunit Suri to proceed with securing the loan. On November 8, 2017, the Corporate Debtor sought consent to secure the loan against fixed deposits. The Financial Creditor consented on November 9, 2017. On December 12, 2017, the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether a default has occurred in …

**Ratio:** Section 7(5) of the IBC states that where the Adjudicating Authority is satisfied that a

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**Reasoning:** The Adjudicating Authority considered the details furnished by the Petitioner, including

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**Interpretation:** The provision requires the Adjudicating Authority to determine if a default has

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**Application:** The Corporate Debtor's failure to pay the debt and the admission of liability,

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## Parties

- **Judges:** Ajay Kumar…; Manoj Kumar…
- **Appellants:** Park View…
- **Respondents:** SDU Travels…
- **Advocates:** Rohit R K…; B.C Thiruve…; +1 more

## Timeline

- **2010-09-22 — Corporate Debtor…**: SDU Travels Private…
- **2017-11-01 — Board Reso…**: A Board Resolution was passed by the Corporate Debtor authorizing Mr. Sunit Suri to…

## 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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