# In the matter of Sri Vishnu Annamalaiyar Paper Mills Limited IBA-760-2019

> NCLT judgment dated 2019-10-11. Citation: TCN-2019-NCLT-01019. The case involves an Insolvency and Bankruptcy Application (IBA) filed under Section 7 of the…

- **Court:** NCLT
- **Order date:** 11 Oct 2019
- **Citation:** TCN-2019-NCLT-01019
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-vishnu-annamalaiyar-paper-mills-limited-iba-760-2019-10fd52e2

## Summary

### Background

The case involves an Insolvency and Bankruptcy Application (IBA) filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Mr. P. Jeevanantham, the Financial Creditor, against M/s. Sri Vishnu Annamalaiyar Paper Mills Limited, the Corporate Debtor. The Financial Creditor claims that the Corporate Debtor defaulted in repaying an amount of ₹40,99,838 as of 31.03.2019. The Applicant disbursed ₹4,46,81,375 to the Corporate Debtor towards Working Capital of the Company. The Applicant keeps funding the Corporate Debtor as and when the Corporate Debtor makes oral request sometimes written request, this Applicant provides loan to the Corporate Debtor.

## Facts

Mr. P. Jeevanantham, proprietor of M/s. Sree Meenakshi Paper Agencies, filed an Insolvency and Bankruptcy Application (IBA) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Sri Vishnu Annamalaiyar Paper Mills Limited. The basis of the application was the Corporate Debtor's default in repaying ₹40,99,838 as of 31.03.2019. The Applicant had disbursed ₹4,46,81,375 to the Corporate Debtor as working capital. The Applicant provided bank statements showing 95 transactions between 01.01.2016 and 31.10.2017. The Corporate Debtor acknowledged the debt but requested more time to repay. The Applicant issued a Demand Notice dated 27.05.2019, which the Corporate Debtor did not comply with. The Corporate Debtor sent letters dated 21.10.2016 and 13.09.2017

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in …

**Ratio:** The legal principle is that if a corporate debtor defaults on a debt exceeding the

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**Reasoning:** The court relied on the evidence presented by the Applicant, including bank statements

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**Interpretation:** The interpretation of the IBC is that a default occurs when the corporate

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**Application:** In this case, the Applicant provided bank statements showing disbursements to

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** P. Jeevan…
- **Respondents:** M/s. Sri Vishnu…

## Timeline

- **2019-03-31 — Default…**: Corporate Debtor defaulted…
- **2019-05-27 — Demand N…**: Applicant issued Demand…

## 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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