# 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-02365. 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-02365
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sharadamba-developers-pvt-ltd-cp-ib-no-160-bb-2020-7a61dd0b

## 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 due to a default of Rs. 2,13,07,397.26. The financial creditor and corporate debtor had entered into an agreement on 01.12.2016, 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 financial creditor issued reminder and demand notices when the corporate debtor failed to repay the loan. The corporate debtor acknowledged the debt but expressed inability

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## Facts

Heimdall Advisory Pvt. Ltd. (Financial Creditor) and Sharadamba Developers Pvt. Ltd. (Corporate Debtor) entered into a loan agreement on 01.12.2016, where Heimdall agreed to lend Rs. 60,00,000 to Sharadamba as a short-term loan with a 20% per quarter interest rate. The loan tenure was initially 90 days. Sharadamba failed to repay the loan, leading Heimdall to issue reminder and demand notices. Sharadamba acknowledged the debt but expressed inability to repay. Pramerica, a shareholder in Metrocorp, had an injunction against Metrocorp and Krishnappa, which affected the Corporate Debtor's ability to alienate assets. The Corporate Debtor was also listed as 'ACTIVE Non-Compliant' and 'Strike Off' on the MCA website. The date of default occurred on 01.03.2017. The total

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## Issues and analysis

### Issue 1: Whether there has been an admitted default in repayment of debt by the Corporate Debtor under …

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

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**Reasoning:** The Corporate Debtor failed to repay the loan amount as per the agreement, and the

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**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to trigger

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**Application:** The Corporate Debtor's failure to repay the loan, despite acknowledging the

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. Heimdall…
- **Respondents:** M/s. Sharadamba…

## Timeline

- **2016-12-01 — Loan Agre…**: Heimdall Advisory Pvt. Ltd. and Sharadamba Developers Pvt. Ltd. entered into a loan…
- **2017-03-01 — Date of D…**: The date of default occurred when the…

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