# In the matter of Shiva Medicare Ltd CP (IB) No 27-7-HDB-2019

> NCLT judgment dated 2020-12-14. Citation: TCN-2020-NCLT-00094. The case involves an application filed by a financial creditor, CH Mani Kumar, against a…

- **Court:** NCLT
- **Order date:** 14 Dec 2020
- **Citation:** TCN-2020-NCLT-00094
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shiva-medicare-ltd-cp-ib-no-27-7-hdb-2019-7020aaa3

## Summary

### Background

The case involves an application filed by a financial creditor, CH Mani Kumar, against a corporate debtor, Shiva Medicare Limited, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The financial creditor claims a default on a financial debt of Rs. 4,49,950/- plus interest, totaling Rs. 14,33,476/-. The corporate debtor disputes the claim, citing limitation and lack of proper records due to a change in management and shifting of the registered office. The corporate debtor acknowledged the principal amount but contested the interest payable.

## Facts

CH Mani Kumar, a financial creditor, filed an application against Shiva Medicare Limited, a corporate debtor, under Section 7 of the IBC, 2016, claiming a default on a financial debt. The debt originated from a loan of Rs. 4,49,950/- lent on 17.10.2012, with an agreed interest rate of 18% per annum. The total amount due, including interest up to 30.10.2018, was Rs. 14,33,476/-. The corporate debtor acknowledged the principal amount in a letter dated 20.10.2012 and further confirmed the borrowed amount in a communication dated 01.10.2016, while also admitting its inability to pay the interest. The corporate debtor had requested a No Objection Certificate (NOC) from the financial creditor for a scheme of capital reduction, which was granted on 10.07.2014. The corporate

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor under Section 7 of the IBC, 2016, is …

**Ratio:** Section 7 of the IBC, 2016, allows a financial creditor to initiate CIRP against a

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**Reasoning:** The Adjudicating Authority considered the documents submitted by the financial creditor,

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The Adjudicating Authority found that the financial creditor had provided

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## Parties

- **Judges:** K. Anantha…; Veera Brahma Rao…
- **Appellants:** CH Mani…
- **Respondents:** Shiva Medicare…; Shiva Medic…
- **Advocates:** Bojja Arjun…; Shireen Sethna…

## Timeline

- **1991-12-02 — Incorporation of…**: Shiva Medicare Limited…
- **2012-10-17 — Loan Disb…**: Rs. 4,49,950/- lent to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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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/shiva-medicare-ltd-cp-ib-no-27-7-hdb-2019-7020aaa3