# In the matter of Sunshine Technobuild Private Limited CP(IB)No.1897-NCLT-MB-2019

> NCLT judgment dated 2020-02-17. Citation: TCN-2020-NCLT-01923. This case involves an application filed by Mrs. Prafulla Shah, the wife of the late Prakash G.…

- **Court:** NCLT
- **Order date:** 17 Feb 2020
- **Citation:** TCN-2020-NCLT-01923
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sunshine-technobuild-private-limited-cpibno1897-nclt-mb-2019-1e47912a

## Summary

### Background

This case involves an application filed by Mrs. Prafulla Shah, the wife of the late Prakash G. Shah, against Sunshine Technobuild Pvt. Ltd., the Corporate Debtor, under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code). The application seeks to initiate Corporate Insolvency Resolution Process (CIRP) due to a default of ₹39,28,109/- inclusive of interest. The financial creditor, Prakash G. Shah, had granted a loan of ₹30,00,000/- to the Corporate Debtor, which the debtor failed to repay. After the death of the financial creditor, his wife, Prafulla Shah, filed the application based on a Will authorizing her to recover the loans.

## Facts

The late Prakash G. Shah, the original financial creditor, granted a loan of ₹30,00,000 to Sunshine Technobuild Private Limited, the Corporate Debtor, as requested by its director, Mr. Atul Bharani. This loan was disbursed from a joint account held by Prakash G. Shah and his wife, Prafulla Shah, in State Bank of India. A Demand Promissory Note dated 30.01.2014 was issued by the Corporate Debtor. Prakash G. Shah passed away on 08.08.2017. His wife, Prafulla Shah, authorized by his Will dated 02.02.2017, filed an application under Section 7 of the I&B Code, 2016, to initiate CIRP against the Corporate Debtor due to a default of ₹39,28,109, which included interest. The Corporate Debtor paid interest for the financial years 2013-2014, 2014-2015, 2015-2016, and part of

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## Issues and analysis

### Issue 1: Whether the application filed by Mrs. Prafulla Shah under Section 7 of the I&B Code, 2016, is …

**Ratio:** The ratio is that the wife and joint account holder of the Financial Creditor, who is

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**Reasoning:** The court reasoned that the applicant, being the wife and joint account holder of the

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**Interpretation:** The interpretation is that the right to initiate insolvency proceedings can be

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**Application:** The ratio and reasoning apply to the specific facts because Mrs. Prafulla Shah

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## Parties

- **Judges:** Mr Bhaskara…; RAJESH S…
- **Appellants:** Prafulla…
- **Respondents:** Sunshine Technobui…
- **Advocates:** Ankit L…; Chetan R.…; +4 more

## Timeline

- **2014-01-30 — Demand Promiss…**: Demand Promissory Note dated 30.01.2014 for…
- **2017-02-02 — Will Dat…**: Will dated 02.02.2017 authorizing…

## 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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