# In the matter of Shivkripa Ispat Pvt. Ltd. T.CP. No. 644-I&BP-NCLT-MB-MAH-2017

> NCLT judgment dated 2017-08-14. Citation: TCN-2017-NCLT-00632. The case involves an application by Abhyudaya Co-operative Bank Limited, an operational…

- **Court:** NCLT
- **Order date:** 14 Aug 2017
- **Citation:** TCN-2017-NCLT-00632
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shivkripa-ispat-pvt-ltd-tcp-no-644-ibp-nclt-mb-mah-2017-41528431

## Summary

### Background

The case involves an application by Abhyudaya Co-operative Bank Limited, an operational creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shivkripa Ispat Pvt. Ltd., the corporate debtor. The petitioner claims that the corporate debtor defaulted on loan repayments. The petitioner seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor.

## Facts

Abhyudaya Co-operative Bank Limited, the petitioner, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shivkripa Ispat Pvt. Ltd., the corporate debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petitioner claimed that the corporate debtor had defaulted on loan repayments. The total loan granted by the financial creditor to the corporate debtor was Rs. 1727 Lakhs. The petitioner claimed a total debt of Rs. 24,50,95,702 along with interest. The petitioner had granted credit facilities to the corporate debtor, secured by registered mortgage deeds and extensions thereof. Due to non-payment of the outstanding debt, the petitioner had filed an Original Application (O.A.) before the Debt Recovery

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the …

**Ratio:** The application is maintainable if the operational creditor demonstrates the existence of

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**Reasoning:** The court reasoned that the petitioner had demonstrated the existence of a financial debt

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows an operational

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**Application:** The court applied the ratio to the facts of the case and found that the

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## Parties

- **Judges:** M.K. Sh…; Bhaskara Pantula…
- **Appellants:** Abhyudaya…
- **Respondents:** Shivkripa Ispat…

## Timeline

- **2017-06-09 — Petition…**: The Petition under consideration was filed on 09th June, 2017 by invoking the provisions…
- **2017-08-04 — Hearing…**: The case was heard on…

## 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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