# In the  matter of S.K.P.J. Investment and Finance Private Limited IB-2906-ND-2019

> NCLT judgment dated 2021-10-25. Citation: TCN-2021-NCLT-00703. The case involves an application filed by Utsav Securities Private Limited, the Financial…

- **Court:** NCLT
- **Order date:** 25 Oct 2021
- **Citation:** TCN-2021-NCLT-00703
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/skpj-investment-and-finance-private-limited-ib-2906-nd-2019-ac3f35f9

## Summary

### Background

The case involves an application filed by Utsav Securities Private Limited, the Financial Creditor, against S.K.P.J. Investment & Finance Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The application seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The financial creditor disbursed a loan to the corporate debtor as per a loan agreement. The corporate debtor defaulted on repayment.

## Facts

Utsav Securities Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against S.K.P.J. Investment & Finance Private Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Financial Creditor had disbursed a loan of Rs. 10,00,000 to the Corporate Debtor on 08.12.2018 as per the loan agreement. The loan was disbursed from the bank account of the financial creditor to the bank account of the corporate debtor on 10.12.2018. The corporate debtor was granted the loan for a period of six months, with an interest rate of 9% p.a. The Corporate Debtor was liable to repay the entire outstanding amount as on 09.06.2019. The Corporate Debtor was also obliged to pay an

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the IBC, 2016, for …

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

…

**Reasoning:** The Adjudicating Authority considered the application and the evidence provided by the

…

**Interpretation:** Section 7 of the IBC, 2016, provides a mechanism for financial creditors to

…

**Application:** In this case, the Financial Creditor provided evidence of the default by the

…

## Parties

- **Judges:** P.S.N. P…; Narender Kumar…
- **Appellants:** Utsav Securities…
- **Respondents:** S.K.P.J. INVESTMEN…

## Timeline

- **2018-12-08 — Loan Agre…**: Financial creditor had to disburse the loan amount into the bank account of the corporate…
- **2018-12-10 — Loan Disbur…**: Rs. 10,00,000 was disbursed from the bank account of the financial creditor to the bank…

## Legal provisions

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

---

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/skpj-investment-and-finance-private-limited-ib-2906-nd-2019-ac3f35f9