# 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-01202. Shriram City Union Finance Limited, a financial creditor, filed a company petition against…

- **Court:** NCLT
- **Order date:** 4 Jul 2018
- **Citation:** TCN-2018-NCLT-01202
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/thirrupathi-brothers-film-media-private-limited-cp-273-ib-cb-2018-633663a9

## 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. A loan agreement was entered into on 21.07.2016, with an interest rate of 22% p.a. The financial creditor approached the Adjudicating Authority after waiting for a long period and despite the corporate debtor acknowledging its dues.

## Facts

Shriram City Union Finance Limited (Financial Creditor) extended financial assistance of Rs. 1,00,00,000/- to Thirrupathi Brothers Film Media Private Limited (Corporate Debtor). The Corporate Debtor agreed to create a charge over its property as security. A loan agreement was executed on 2016-07-21 with an interest rate of 22% p.a. The Corporate Debtor failed to repay the debt, leading to an outstanding amount of Rs. 1,48,05,138/- as of 2018-01-30. The Financial Creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor appeared but did not resist the petition. The Financial Creditor demonstrated the occurrence of default through relevant documents.

## Issues and analysis

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

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

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

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The Financial Creditor demonstrated the occurrence of default by placing

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** Shriram City…
- **Respondents:** Thirrupathi…

## 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 due from Thirrupathi Brothers Film Media Private Limited to…

## 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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