# In the matter of Sharma Kalypso Pvt. Ltd. (IB)-1887(ND)2019

> NCLT judgment dated 2020-01-02. Citation: TCN-2020-NCLT-02560. The case involves a petition filed by Corporation Bank, the Financial Creditor, under Section 7…

- **Court:** NCLT
- **Order date:** 2 Jan 2020
- **Citation:** TCN-2020-NCLT-02560
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sharma-kalypso-pvt-ltd-ib-1887nd2019-1f2d6674

## Summary

### Background

The case involves a petition filed by Corporation Bank, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Sharma Kalypso Pvt. Ltd., the Corporate Debtor. The Financial Creditor claims that the Corporate Debtor defaulted on a loan of Rs. 71,62,70,000. The Corporate Debtor raised objections regarding the maintainability of the application, citing issues with the Power of Attorney, limitation, and the account not being declared an NPA by the Financial Creditor.

## Facts

Corporation Bank, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Sharma Kalypso Pvt. Ltd., the Corporate Debtor. The Financial Creditor sanctioned a total loan of Rs. 71,62,70,000 to the Corporate Debtor. The Corporate Debtor defaulted on the loan, with the total claim as of 16.02.2018 being Rs. 79,14,95,288.26 and the total claim including interest up to 01.06.2019 being Rs. 88,25,77,012.26. The account was classified as NPA on 31.03.2017. The Corporate Debtor raised objections, including that the application was not filed in compliance with Section 7 of the IBC, that no financial debt was due, and that the application was barred by

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is maintainable under Section 7 of the …

**Ratio:** Section 7(5) of the IBC allows for the admission of an application if a default has

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**Reasoning:** The NCLT found that the Financial Creditor had established a default on the part of the

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**Interpretation:** Section 7 of the IBC provides the framework for initiating the CIRP by a

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**Application:** The NCLT applied Section 7(5) of the IBC to the facts of the case, finding that

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## Parties

- **Judges:** Ina Mal…; Shri. L. N.…
- **Appellants:** Corporatio…
- **Respondents:** M/s Sharma…

## Timeline

- **2001-03-01 — GPA Date…**: Mr. P.Y. Jakkareddy…
- **2009-04-09 — Incorporati…**: M/s Sharma Kalypso Pvt.…

## 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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