# In the matter of Shilpi Cables Pvt. Ltd. (IB) 461(PB)-2017

> NCLT judgment dated 2018-03-14. Citation: TCN-2018-NCLT-01705. BDR Builders & Developers Pvt. Ltd. filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 14 Mar 2018
- **Citation:** TCN-2018-NCLT-01705
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shilpi-cables-pvt-ltd-ib-461pb-2017-0b7221b8

## Summary

### Background

BDR Builders & Developers Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Shilpi Cables Pvt. Ltd., claiming default on a loan of Rs. 31,00,00,000/-. The applicant, BDR Builders, is a non-government private company. The corporate debtor, Shilpi Cables, is also a non-government private company. The financial creditor claims that the corporate debtor failed to repay the loan amount and interest, leading to the application for initiation of corporate insolvency resolution process.

## Facts

BDR Builders & Developers Pvt. Ltd. (the applicant) filed an application against Shilpi Cables Pvt. Ltd. (the corporate debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The applicant claimed that the corporate debtor defaulted on a loan of Rs. 31,00,00,000/-. The loan agreement was dated 23.12.2015. The corporate debtor had issued six cheques towards discharge of the loan amount, which were dishonored on 28.4.2017. An amended loan-cum-guarantee deed was executed on 01.05.2017, with Manish Goel and Mukesh Kumar Gupta as guarantors. The corporate debtor also pledged equity shares and warrants in Shilpi Cable Technologies Limited in favor of the financial creditor. The corporate debtor failed to repay the loan amount, which became due on

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

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

…

**Reasoning:** The court found that the applicant, being a financial creditor, had the right to file the

…

**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

…

**Application:** The applicant, BDR Builders & Developers Pvt. Ltd., is a financial

…

## Parties

- **Judges:** DEEPTI M…; S. K. MOH…
- **Appellants:** BDR Builders &…
- **Respondents:** Shilpi Cables…

## Timeline

- **2015-12-23 — Loan Agre…**: Loan agreement dated 23.12.2015 was executed between the financial creditor and corporate…
- **2017-04-28 — Cheque Di…**: Six cheques issued by the corporate debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/shilpi-cables-pvt-ltd-ib-461pb-2017-0b7221b8