# In the matter of Sharadamba Developers Pvt. Ltd. C.P. (IB) No. 160-BB-2020

> NCLT judgment dated 2021-04-16. Citation: TCN-2021-NCLT-02357. Heimdall Advisory Pvt. Ltd. filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 16 Apr 2021
- **Citation:** TCN-2021-NCLT-02357
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sharadamba-developers-pvt-ltd-cp-ib-no-160-bb-2020-2c63117b

## Summary

### Background

Heimdall Advisory Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Sharadamba Developers Private Limited. The application was based on a default of Rs. 2,13,07,397.26, including interest, arising from a loan agreement dated 01.12.2016. The Financial Creditor and Corporate Debtor had entered into an agreement where the Financial Creditor agreed to lend Rs. 60,00,000 to the Corporate Debtor as a short-term loan. The initial tenure was 90 days, extendable by the Financial Creditor, but this was never done. The loan carried a 20% per quarter interest rate. The Corporate Debtor failed to repay the loan despite reminders and a formal demand notice. The

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## Facts

Heimdall Advisory Pvt. Ltd. (Financial Creditor) sought to initiate CIRP against Sharadamba Developers Pvt. Ltd. (Corporate Debtor) due to a default of Rs. 2,13,07,397.26. On 01.12.2016, the parties entered into a loan agreement where the Financial Creditor agreed to lend Rs. 60,00,000 to the Corporate Debtor as a short-term loan with a 20% per quarter interest rate. The initial tenure was 90 days, but no extension was granted. The Corporate Debtor failed to repay the loan despite reminders and a formal demand notice issued on 03.03.2017. The Corporate Debtor acknowledged the debt in a letter dated 09.03.2017, but expressed inability to repay. The Corporate Debtor was also in the process of being struck off from the register of companies. Pramerica, a shareholder in

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is maintainable given the Corporate Debtor's …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had admitted to the debt and

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to initiate

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**Application:** In this case, the Corporate Debtor's admission of the debt and failure to

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Heimdall Advisory…
- **Respondents:** Sharadamba…

## Timeline

- **2016-12-01 — Loan Agre…**: Heimdall Advisory Pvt. Ltd. and Sharadamba Developers Pvt. Ltd. entered into a loan…
- **2017-03-01 — Default…**: The Corporate Debtor…

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