# In the matter of Thirrupathi Brothers Film Media Private Limited CP-273-(IB)-CB-2018

> NCLT judgment dated 2018-07-04. Citation: TCN-2018-NCLT-01196. Shriram City Union Finance Limited, a financial creditor, filed a company petition against…

- **Court:** NCLT
- **Order date:** 4 Jul 2018
- **Citation:** TCN-2018-NCLT-01196
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/thirrupathi-brothers-film-media-private-limited-cp-273-ib-cb-2018-04c05362

## Summary

### Background

Shriram City Union Finance Limited, a financial creditor, filed a company petition against Thirrupathi Brothers Film Media Private Limited, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, due to the corporate debtor's inability to repay a debt of Rs. 1,48,05,138/-. The corporate debtor had approached the financial creditor for financial assistance of Rs. 1,00,00,000/-, agreeing to create a charge over its property as security. A loan agreement was entered on 2016-07-21. Despite acknowledging its dues, the corporate debtor failed to repay the debt.

## Facts

Shriram City Union Finance Limited (Financial Creditor) filed a petition against Thirrupathi Brothers Film Media Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had approached the Financial Creditor for financial assistance of Rs. 1,00,00,000/- and entered into a loan agreement on 2016-07-21. The Corporate Debtor agreed to repay the amount with 22% interest p.a. and created a simple mortgage over its property. As of 2018-01-30, the outstanding amount was Rs. 1,48,05,138/-. The Corporate Debtor acknowledged its dues but failed to repay. The Financial Creditor approached the Adjudicating Authority for initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor appeared but did not

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## Issues and analysis

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

**Ratio:** The petition under Section 7 of the IBC can be admitted if the Adjudicating Authority is

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**Reasoning:** The Adjudicating Authority was satisfied that the Financial Creditor had proved the

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

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**Application:** In this case, the Financial Creditor demonstrated that the Corporate Debtor had

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** Shriram City…
- **Respondents:** Thirrupathi…
- **Advocates:** M. Sri…; R. Umash…; +1 more

## Timeline

- **2016-07-21 — Loan Agre…**: Shriram City Union Finance Limited and Thirrupathi Brothers Film Media Private Limited…
- **2018-01-30 — Outstanding…**: The outstanding amount…

## 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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