# In the matter of Skyhigh Infraprojects Limited Company Petition No. (IB)No. 358-ALD-2019

> NCLT judgment dated 2020-01-07. Citation: TCN-2020-NCLT-02473. The case pertains to a petition filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 7 Jan 2020
- **Citation:** TCN-2020-NCLT-02473
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/skyhigh-infraprojects-limited-company-petition-no-ibno-358-ald-2019-81098a12

## Summary

### Background

The case pertains to a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s Orion Infrabuild Pvt. Ltd. (Financial Creditor) against M/s Sky High Infraprojects Pvt. Ltd. (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP) due to the corporate debtor's inability to liquidate its financial debt. The corporate debtor had approached the director of the creditor for a short-term financial support for business purposes, resulting in a loan of Rs. 48,00,000 disbursed on 03.08.2016. The corporate debtor was obligated to repay the amount by 25.03.2019, failing which an 18% compounded annual interest would apply. The corporate debtor issued two post-dated cheques for Rs. 24,00,000 each, dated 25.02.2019 and

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## Facts

M/s Orion Infrabuild Pvt. Ltd. (Financial Creditor) provided a loan of Rs. 48,00,000 to M/s Sky High Infraprojects Pvt. Ltd. (Corporate Debtor) on 03.08.2016 for business purposes. The Corporate Debtor was required to repay the loan by 25.03.2019, with an 18% compounded annual interest applicable in case of default. The Corporate Debtor issued two post-dated cheques of Rs. 24,00,000 each, dated 25.02.2019 and 25.03.2019, which were dishonored. The Corporate Debtor defaulted on the payment, leading the Financial Creditor to issue a demand letter on 15.05.2019. The Corporate Debtor acknowledged the loan agreement in a reply dated 24.06.2019 but failed to make any payments. The total amount due as of the date of default (25.03.2019) was Rs. 48,00,000 plus interest. The

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## Issues and analysis

### Issue 1: Whether there is duly …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 requires the establishment of a

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**Reasoning:** The Corporate Debtor had approached the director of the creditor for a short-term

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**Interpretation:** A financial debt is established when there is a legally binding agreement for a

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**Application:** In this case, the loan agreement, the disbursement of funds, and the Corporate

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** M/s Orion…
- **Respondents:** M/s Sky High…

## Timeline

- **2016-08-03 — Loan Disbur…**: M/s Orion Infrabuild Pvt. Ltd. disbursed a loan of Rs. 48,00,000 to M/s Sky High…
- **2019-02-25 — Cheque D…**: Cheque no. 001884,…

## 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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