# In the matter of Shree Ganesh Jewellery House (I) Ltd. Company Petition (IB) No. 579-KB-2017

> NCLT judgment dated 2018-02-12. Citation: TCN-2018-NCLT-01849. The case involves a Company Petition (IB) No.579/KB/2017 filed under Section 7 of the…

- **Court:** NCLT
- **Order date:** 12 Feb 2018
- **Citation:** TCN-2018-NCLT-01849
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-ganesh-jewellery-house-i-ltd-company-petition-ib-no-579-kb-2017-02652bd2

## Summary

### Background

The case involves a Company Petition (IB) No.579/KB/2017 filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Abhishek Stock Broking Services Pvt. Ltd. and three other financial creditors against Shree Ganesh Jewellery House (I) Ltd., the corporate debtor, before the National Company Law Tribunal, Kolkata Bench. The financial creditors claimed default on loans extended to the corporate debtor. The corporate debtor contested the application, denying the debt and alleging the application was an abuse of process. The financial creditors argued that the corporate debtor had failed to show any ground for rejection of the application and had admitted the debt by issuing confirmation of accounts.

## Facts

Abhishek Stock Broking Services Pvt. Ltd., Narayan Finvest Pvt. Ltd., Ayush Fiscal Pvt. Ltd., and Multiplus Resources Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shree Ganesh Jewellery House (I) Ltd. The financial creditors claimed that the corporate debtor had defaulted on loans. Abhishek Stock Broking Services Pvt. Ltd. had granted a credit facility of Rs.22,00,000/- to the corporate debtor. Narayan Finvest Pvt. Ltd. advanced a loan of Rs.85,00,000/-, Ayush Fiscal Pvt. Ltd. advanced a loan of Rs.65,00,000/-, and Multiplus Resources Ltd. advanced a loan of Rs.40,00,000/-. The total amount claimed to be in default was Rs.56,64,439/- as on 31/8/2017. The corporate debtor denied the debt and the authenticity of the

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## Issues and analysis

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

**Ratio:** As held in Innoventive Industries Ltd. v. ICICI Bank [2017] 139 CLA 335 by the Hon'ble

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**Reasoning:** The court found that the financial creditors had established that they are financial

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**Interpretation:** Section 7 of the IBC allows financial creditors to initiate corporate

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**Application:** In this case, the court found that the financial creditors had demonstrated the

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## Parties

- **Judges:** Jinan…
- **Appellants:** Abhishek Stock…
- **Respondents:** Shree Ganesh…
- **Advocates:** Anirban…; Urmila Chak…; +3 more

## Timeline

- **2014-06-12 — Loan Disbur…**: Loan of Rs.30,00,000/- given…
- **2014-06-24 — Loan Disbur…**: Loan of Rs.20,00,000/- given…

## 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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