# In the matter of Swastik Coal Corporation Private Limited TP-MP-129 of 2019 {CP (IB) 249 of 2019}

> NCLT judgment dated 2020-12-15. Citation: TCN-2020-NCLT-00081. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Dec 2020
- **Citation:** TCN-2020-NCLT-00081
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/swastik-coal-corporation-private-limited-tp-mp-129-of-2019-cp-ib-249-of-2019-671684d9

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Balaji Coal Private Limited (the Financial Creditor) to initiate Corporate Insolvency Resolution Process (CIRP) against Swastik Coal Corporation Pvt Ltd (the Corporate Debtor). The Financial Creditor claimed a default amount of Rs. 3,43,45,700/- including interest, with the date of default stated as 11.12.2018.

## Facts

Balaji Coal Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Swastik Coal Corporation Pvt Ltd. The claimed default amount was Rs. 3,43,45,700/- including interest, with the default date stated as 11.12.2018. The Financial Creditor presented letters from the Corporate Debtor acknowledging the debt and outlining a payment schedule. The Corporate Debtor disputed the existence of a contract/agreement and the date of default, also arguing that the Financial Creditor failed to provide a record of default with information utility. The NCLT considered the submissions and material on record, noting that the Corporate Debtor had acknowledged the debt in letters. The NCLT admitted the application, appointed

…

## Issues and analysis

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

**Ratio:** The application under Section 7 can be admitted if there is a debt and a default, and the

…

**Reasoning:** The NCLT considered the submissions and material on record, including letters from the

…

**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

…

**Application:** The NCLT applied the ratio to the facts of the case, noting that the Corporate

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Balaji Coal…
- **Respondents:** Swastik Coal…

## Timeline

- **2018-12-11 — Date of D…**: The date of default as stated…
- **2020-12-11 — Date of H…**: Hearing held before the…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/swastik-coal-corporation-private-limited-tp-mp-129-of-2019-cp-ib-249-of-2019-671684d9