# In the matter of SVIIT Software Pvt. Ltd. (IB)-1395(PB)-2019

> NCLT judgment dated 2019-07-25. Citation: TCN-2019-NCLT-02295. Axis Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking…

- **Court:** NCLT
- **Order date:** 25 Jul 2019
- **Citation:** TCN-2019-NCLT-02295
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sviit-software-pvt-ltd-ib-1395pb-2019-12e3b2cd

## Summary

### Background

Axis Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against SVIIT Software Pvt. Ltd. The petition was filed based on the corporate debtor's default in repaying a financial debt. The Adjudicating Authority considered the petition, the corporate debtor's reply, and the arguments presented by both parties.

## Facts

Axis Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against SVIIT Software Pvt. Ltd. The petition was based on the corporate debtor's default in repaying a financial debt amounting to Rs. 58,28,89,088.17/- as on 30.04.2019. The petition was supported by the statement of accounts and other security documents. The corporate debtor, through Mr. Vikas Sethi, admitted to being in default within the meaning of Section 7 of the Code and stated that it did not have substantive grounds to contest the non-payment of the debt. The Adjudicating Authority found that the requirements of Section 7 of the Code were fulfilled and admitted the petition. Mahender Kumar Khandelwal was

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## Issues and analysis

### Issue 1: Whether the requirements of Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Adjudicating Authority considered the petition, the statement of accounts, security

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**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial creditor

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**Application:** In this case, Axis Bank, as the financial creditor, demonstrated the existence

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Axis Ban…
- **Respondents:** SVIIT Software…

## Timeline

- **2019-04-29 — Letter of Acknowledgemen…**: Letter of acknowledgement of debt…
- **2019-04-30 — Debt Amo…**: The outstanding debt was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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