# In the matter of Sky Build Private Limited CP(IB)No.1063-NCLT-MB-2019

> NCLT judgment dated 2019-12-13. Citation: TCN-2019-NCLT-00173. The case involves an application filed by Industrial Engineering Works, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 13 Dec 2019
- **Citation:** TCN-2019-NCLT-00173
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sky-build-private-limited-cpibno1063-nclt-mb-2019-18ee4cb8

## Summary

### Background

The case involves an application filed by Industrial Engineering Works, the Financial Creditor, under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Sky-Build Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The claim amounts to ₹20,00,000. The application is based on consent terms dated 09.12.2017 filed by the Applicant and the Corporate Debtor in a Summary Suit before the Bombay City Civil Court at Dindoshi, where the matter was amicably settled. The Corporate Debtor defaulted on repayments as per the consent terms.

## Facts

Industrial Engineering Works, the Financial Creditor, filed an application under Section 7 of the I&B Code, 2016, against Sky-Build Private Limited, the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP) for a debt of ₹20,00,000. The application was based on consent terms dated 09.12.2017, agreed upon in a Summary Suit No.400 of 2016 before the Bombay City Civil Court at Dindoshi. The Corporate Debtor had agreed to repay ₹30,00,000 in three installments as per the consent terms. Cheques issued for the second and third installments were dishonored. The Summary Suit was filed to recover ₹39,28,254, which was due on account of default in repayment of a hand loan granted to the Corporate Debtor at 12% interest. Despite sufficient

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the I&B Code, 2016, is complete and meets the …

**Ratio:** Section 7 of the I&B Code, 2016, allows a financial creditor to initiate CIRP against

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**Reasoning:** The court observed that the application was filed under Section 7 of the I&B Code,

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**Interpretation:** Section 7 of the I&B Code, 2016, provides the mechanism for a financial

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**Application:** The court applied the provisions of Section 7 to the facts of the case, noting

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## Parties

- **Judges:** RAJESH S…; Bhaskara Pantula…
- **Appellants:** Industrial…
- **Respondents:** Sky-Build Private…; Hetal Joba…
- **Advocates:** Rahul S…; Pankaj Utt…; +2 more

## Timeline

- **2016-01-01 — Summary Suit No.400 of…**: Summary Suit No.400 of 2016 filed before the…
- **2017-12-09 — Consent…**: Consent terms dated 09.12.2017 filed by the Applicant and the Corporate Debtor in the…

## 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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