# In the matter of Talwalkars Better Value Fitness Limited C.P. (IB)No. 1056-NCLT-MB-C-IV-2020

> NCLT judgment dated 2021-01-11. Citation: TCN-2021-NCLT-03339. Axis Bank Limited, the Financial Creditor/Applicant, filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 11 Jan 2021
- **Citation:** TCN-2021-NCLT-03339
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/talwalkars-better-value-fitness-limited-cp-ibno-1056-nclt-mb-c-iv-2020-a380f23b

## Summary

### Background

Axis Bank Limited, the Financial Creditor/Applicant, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against Talwalkars Better Value Fitness Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The application was filed due to a default of Rs.66,80,82,791.17/- along with interest. The Corporate Debtor remained unrepresented despite opportunities given to appear and submit a reply.

## Facts

Axis Bank Limited filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Talwalkars Better Value Fitness Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The application was based on a default of Rs.66,80,82,791.17/- (Rupees sixty-six crore eighty lakh eighty-two thousand seven hundred ninety-one and seventeen rupees only) along with interest @09.75% p.a. and Penal Interest @2% p.a. The date of default is 29.08.2019. The date of NPA is 28.11.2019. The Applicant had granted to Corporate Debtor Term Loan Facility for Rs.2,98,07,00,000/- for refinancing the term loan of Rs.1,98,07,00,000/- from State Bank of India and Rs.1,00,00,00,000/- for meeting the capital expenditure and other transactional expenses,

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the I&B Code is …

**Ratio:** Section 7 of the I&B Code allows a financial creditor to initiate CIRP against a

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**Reasoning:** The court perused the documents submitted by the Applicant and found that the application

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**Interpretation:** Section 7 of the I&B Code provides the mechanism for a financial creditor

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**Application:** The court determined that the application filed by Axis Bank Limited was

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## Parties

- **Judges:** RAJESH S…; SUCHITRAKAN…
- **Appellants:** Axis Bank L…
- **Respondents:** Talwalkars Better…

## Timeline

- **2016-01-01 — I&B Code…**: Insolvency & Bankruptcy…
- **2016-10-03 — Sanction…**: Sanction letter for Term Loan…

## 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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