# In the matter of Shree Vinayak Foods & Fabrics Pvt. Ltd. C.P. (I.B) No. 6-7-NCLT-AHM-2017

> NCLT judgment dated 2018-02-21. Citation: TCN-2018-NCLT-01790. Mr. Biren Parikh, styling himself as a financial creditor, filed a petition under Section 7 of…

- **Court:** NCLT
- **Order date:** 21 Feb 2018
- **Citation:** TCN-2018-NCLT-01790
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-vinayak-foods-fabrics-pvt-ltd-cp-ib-no-6-7-nclt-ahm-2017-755767ab

## Summary

### Background

Mr. Biren Parikh, styling himself as a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, requesting the Adjudicating Authority to commence Corporate Insolvency Resolution Process (CIRP) in respect of M/s. Shree Vinayak Foods & Fabrics Pvt. Ltd., styling it as the corporate debtor. Shree Vinayak Foods & Fabrics Private Limited is a company incorporated under the Companies Act, 1956, with its registered office in Ahmedabad, engaged in the textile and food industries. In the financial year 2012-13, the corporate debtor approached the petitioner for a corporate loan, and the petitioner provided a loan of Rs. 1.45 crores.

## Facts

Mr. Biren Parikh, claiming to be a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Shree Vinayak Foods & Fabrics Pvt. Ltd. The corporate debtor, engaged in the textile and food industries, had approached the petitioner for a corporate loan in the financial year 2012-13. The petitioner provided a loan of Rs. 1.45 crores to the corporate debtor through multiple cheques issued between March and November 2013. Specifically, Rs. 50.00 lacs was given via cheque dated 11.03.2013, Rs. 50.85 lacs via cheque dated 28.03.2013, Rs. 24.15 lacs via cheque dated 05.04.2013, Rs. 10.00 lacs via cheque dated 26.11.2013, and Rs. 10.00 lacs via cheque dated

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## Issues and analysis

### Issue 1: Whether the petition filed by the financial creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The Adjudicating Authority considered the documents and submissions made by the financial

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**Interpretation:** Section 7 is interpreted to mean that if a financial creditor can demonstrate

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**Application:** In this case, the petitioner, Mr. Biren Parikh, presented evidence of a loan of

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## Parties

- **Judges:** BIKKI RAVEENDRA…; Manorama…
- **Appellants:** Biren P…
- **Respondents:** Shree Vinayak…

## Timeline

- **2012-01-01 — Corporate Debtor Seeks…**: The corporate debtor, Shree Vinayak Foods & Fabrics Pvt. Ltd., approached the petitioner…
- **2013-03-11 — First Cheque…**: Rs. 50.00 lacs was given via cheque…

## 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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