# In the matter of Swayam Metals Limited C.P. No. (IB) 500-7-NCLT-AHM-2019

> NCLT judgment dated 2019-08-27. Citation: TCN-2019-NCLT-01765. Meridian Telesoft Limited filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Aug 2019
- **Citation:** TCN-2019-NCLT-01765
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/swayam-metals-limited-cp-no-ib-500-7-nclt-ahm-2019-1648db75

## Summary

### Background

Meridian Telesoft Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking reliefs under Section 7(5)(a) and Section 13(1)(a)(b)(c) of the Code. The petition was filed against Swayam Metals Limited, formerly known as Somani Strips Ltd., for default in repayment of a loan.

## Facts

Meridian Telesoft Limited (the financial creditor) filed a petition against Swayam Metals Limited (the corporate debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. Meridian Telesoft Limited, incorporated on 09.10.1992, is in the business of providing business loans. Swayam Metals Limited, incorporated on 25.05.1992, obtained a loan of Rs. 5,00,000/- from Meridian Telesoft Limited on 1st April 2010, against a promissory note dated 3rd April 2010, with an interest rate of 12% per annum. As per the calculation, an amount of Rs. 14,07,337/- was payable by the respondent. The applicant claimed that Rs. 9,07,337/- had accrued till 15.05.2019. The respondent did not raise any dispute regarding the claim and acknowledged the loan from time to time. The

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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 of the Insolvency and Bankruptcy Code, 2016, outlines the procedure for

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**Reasoning:** The Adjudicating Authority observed that the application was furnished in the prescribed

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**Interpretation:** Section 7 requires the financial creditor to provide evidence of the debt and

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**Application:** The Adjudicating Authority found that the application was complete in all

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Meridian Telesoft…
- **Respondents:** Swayam Meta…

## Timeline

- **2010-04-01 — Loan Disb…**: The applicant/operational creditor disbursed a loan of Rs. 5,00,000/- to the…
- **2010-04-03 — Promissor…**: Execution of promissory note by…

## 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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