# In the matter of Trimurti Casting Private Limited Company Petition (IB) No. 355-ALD-2019

> NCLT judgment dated 2019-12-24. Citation: TCN-2019-NCLT-00018. The case pertains to a petition filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 24 Dec 2019
- **Citation:** TCN-2019-NCLT-00018
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/trimurti-casting-private-limited-company-petition-ib-no-355-ald-2019-56e14f47

## Summary

### Background

The case pertains to a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Trimurti Concast Private Limited, due to its inability to liquidate its financial debt. The Applicant, Ram Alloy Castings Private Limited, had entered into a loan facility agreement with the Corporate Debtor on 2014-12-20, disbursing a loan of Rs. 3,59,00,0100. The Corporate Debtor was obligated to repay the amount by 2019-01-07, along with interest at 18% p.a. compounded annually and penal interest at 2% p.a. on the defaulted interest.

## Facts

Ram Alloy Castings Private Limited (Financial Creditor) and Trimurti Concast Private Limited (Corporate Debtor) entered into a loan agreement on 2014-12-20, where the Financial Creditor disbursed Rs. 3,59,00,0100 to the Corporate Debtor. The Corporate Debtor was to repay the amount by 2019-01-07 with 18% annual interest and 2% penal interest on defaulted amounts. The Corporate Debtor defaulted, leading the Financial Creditor to demand repayment via a letter dated 2018-01-05. The Corporate Debtor acknowledged the debt on 2019-01-20, citing financial difficulties. Despite further demands, the Corporate Debtor failed to pay. The Financial Creditor issued a letter on 2019-03-15 demanding Rs. 3,59,00,000 plus interest. A recall notice was sent on 2019-04-08. The Corporate

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## Issues and analysis

### Issue 1: Whether there is duly …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 requires the establishment of a

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**Reasoning:** The court examined the loan agreement and related documents to determine the existence of

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**Interpretation:** The term 'financial debt' is interpreted as a debt along with interest, if any,

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**Application:** In this case, the loan agreement and the disbursed amount established the

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** Ram Alloy…
- **Respondents:** Trimurti Concast…

## Timeline

- **2014-12-20 — Loan Agre…**: Ram Alloy Castings Private Limited and Trimurti Concast Private Limited entered into a…
- **2018-01-05 — Demand L…**: Financial Creditor issued a letter…

## 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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