# In the matter of Sunsystem Institute of Information Technology Pvt. Ltd. C.P. No. (IB)-65(PB)-2018

> NCLT judgment dated 2018-05-24. Citation: TCN-2018-NCLT-01369. Piramal Enterprises Limited, the Financial Creditor, filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 24 May 2018
- **Citation:** TCN-2018-NCLT-01369
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sunsystem-institute-of-information-technology-pvt-ltd-cp-no-ib-65pb-2018-1fb31c47

## Summary

### Background

Piramal Enterprises Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Sunsystem Institute of Information Technology Private Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor had guaranteed the repayment of a financial debt granted to All India Society for Advance Education and Research (Original Borrower). The Original Borrower defaulted on the loan, leading to the application for CIRP against the Corporate Debtor as the guarantor.

## Facts

Piramal Enterprises Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Sunsystem Institute of Information Technology Private Limited (Corporate Debtor). The Financial Creditor had granted a loan of Rs. 38,00,00,000 to All India Society for Advance Education and Research (Original Borrower), which was disbursed in two tranches on 28.10.2013 (Rs. 31,17,00,000) and 01.11.2013 (Rs. 6,83,00,000). The Corporate Debtor guaranteed the repayment of the said debt under a Deed of Guarantee dated 18.10.2013. The Original Borrower defaulted on the loan, with the default date being 30.09.2017, and the amount in default was Rs. 40,28,76,461. The Financial

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7(5) of the IBC states that the Adjudicating Authority may admit the application

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**Reasoning:** The Tribunal found that the application was filed in the prescribed proforma under Rule

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**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to

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**Application:** The Tribunal applied the provisions of Section 7(5) of the IBC to the facts of

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Piramal Enterprise…
- **Respondents:** Sunsystem…
- **Advocates:** Mish…; Vaijayant P…

## Timeline

- **2013-10-18 — Deed of Gua…**: The Corporate Debtor guaranteed the repayment of the financial debt under a Deed of…
- **2013-10-28 — First Tranche…**: Rs. 31,17,00,000 disbursed to All India…

## 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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