# In the matter of Shri Govind Realty Pvt. Ltd. IA-44 & 106(MP) 2021 alongwith (MP) CP (IB) No. 75 of 2020

> NCLT judgment dated 2021-12-16. Citation: TCN-2021-NCLT-00150. The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Intec…

- **Court:** NCLT
- **Order date:** 16 Dec 2021
- **Citation:** TCN-2021-NCLT-00150
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shri-govind-realty-pvt-ltd-ia-44-106mp-2021-alongwith-mp-cp-ib-no-75-of-2020-5bc2c914

## Summary

### Background

The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Intec Capital Limited, the Financial Creditor, against Shri Govind Reality Private Limited, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor allegedly defaulted in paying a financial debt of approximately Rs. 2,90,00,000/-, with the date of default stated as 05.03.2018. The Financial Creditor, a Non-Banking Finance Company (NBFC), had granted a term loan of Rs. 3,00,00,000/- to the Corporate Debtor on 16.03.2015, to be repaid in sixty equitable monthly installments. The Financial Creditor had the right to recall the loan in case of default. The Corporate Debtor had issued sixty post-dated cheques in favor of the Financial

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## Facts

Intec Capital Limited, a Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shri Govind Reality Private Limited, the Corporate Debtor, to initiate CIRP due to a default in payment of a financial debt of Rs. 2,90,00,000/-. The default date was 05.03.2018. Intec Capital, an NBFC, had granted a term loan of Rs. 3,00,00,000/- to the Corporate Debtor on 16.03.2015, to be repaid in sixty monthly installments. The Corporate Debtor issued post-dated cheques that were dishonored. The Financial Creditor served a notice on 23.06.2018, recalling the loan. The Corporate Debtor filed IA/44(MP)2021 and IA/106(MP)2021 to restrain the Financial Creditor. The Financial Creditor produced a certificate of default from NeSL. The

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## Issues and analysis

### Issue 1: Whether the application 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 application filed by the Financial Creditor and

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

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**Application:** The Adjudicating Authority found that the Financial Creditor had met the

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## Parties

- **Judges:** Madan B.…; Ajai Das Me…
- **Appellants:** Govind Reality…
- **Respondents:** Intec Capit…

## Timeline

- **2015-03-16 — Loan Disbur…**: Intec Capital Ltd. disbursed a term loan of Rs. 3,00,00,000/- to Shri Govind Reality Pvt.…
- **2018-03-05 — Date of D…**: Shri Govind Reality Pvt. Ltd. defaulted on the repayment of the loan, with the default…

## 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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