# In the matter of Sort India Enviro Solutions Limited C.P. No. (IB) 480-7-NCLT-AHM-2019

> NCLT judgment dated 2020-09-23. Citation: TCN-2020-NCLT-00542. Jain Sons Finlease Limited, the financial creditor, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 23 Sept 2020
- **Citation:** TCN-2020-NCLT-00542
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sort-india-enviro-solutions-limited-cp-no-ib-480-7-nclt-ahm-2019-ab2feddb

## Summary

### Background

Jain Sons Finlease Limited, the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Sort India Enviro Solutions Limited, the corporate debtor, for default in repayment of financial debt. The financial creditor claimed that the corporate debtor failed to repay loans sanctioned to it. The corporate debtor disputed the amount claimed by the financial creditor, alleging incorrect calculations and figures. The corporate debtor also argued that the agreement was silent regarding the repayment schedule, making the calculation of penal interest or charges without basis.

## Facts

Jain Sons Finlease Limited (financial creditor) filed a petition against Sort India Enviro Solutions Limited (corporate debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditor claimed that the corporate debtor defaulted on loan repayments. The financial creditor is a non-banking finance company incorporated on February 15, 1998. The corporate debtor is an unlisted public limited company incorporated on January 19, 2010, engaged in waste management. The financial creditor sanctioned a working capital loan of Rs. 4,00,00,000/- to the corporate debtor on December 26, 2014, to be repaid within 24 months with interest at 19.35% per annum. The corporate debtor also provided a deed of personal guarantee executed by Mr. Paresh T. Parekh and

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is complete and …

**Ratio:** The Adjudicating Authority must be satisfied that a default has occurred. The application

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**Reasoning:** The Adjudicating Authority found that the application was complete in all respects and

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**Interpretation:** Section 7 of the IB Code outlines the procedure for initiating the corporate

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**Application:** The Adjudicating Authority determined that the application was complete and met

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Jain Sons…
- **Respondents:** Sort India Enviro…; M/s. Sort India…
- **Advocates:** Ashutosh…; Ashutosh S…; +1 more

## Timeline

- **1998-02-15 — Incorporation of…**: Jain Sons Finlease Limited incorporated…
- **2010-01-19 — Incorporation of…**: Sort India Enviro Solutions Limited…

## 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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