# In the matter of Unitech Transformers Private Limited CP No. 1616-IBC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-03-22. Citation: TCN-2018-NCLT-01654. Mr. Vellurmadam Harish Gopalkrishnan, the Financial Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 22 Mar 2018
- **Citation:** TCN-2018-NCLT-01654
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/unitech-transformers-private-limited-cp-no-1616-ibc-nclt-mb-mah-2017-992f54ec

## Summary

### Background

Mr. Vellurmadam Harish Gopalkrishnan, the Financial Creditor, filed an application 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, against M/s. Unitech Transformers Private Limited, the Corporate Debtor. The creditor had advanced an unsecured loan of ₹39,00,000 to the debtor through a cheque dated 26.10.2015, based on the debtor's oral request due to financial difficulties. The loan was granted for 3 months at an interest rate of 18% p.a., as communicated in a letter dated 26.10.2015. The creditor sent a reminder on 24.12.2015 for repayment. The debtor, in a letter dated 06.01.2016, expressed inability to repay and requested an extension of 6 months.

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## Facts

Mr. Vellurmadam Harish Gopalkrishnan (Financial Creditor) advanced an unsecured loan of ₹39,00,000 to M/s. Unitech Transformers Private Limited (Corporate Debtor) on 26.10.2015 via cheque no. 435539 drawn on HDFC Bank. The loan was requested by the debtor due to financial crises and granted for a period of 3 months at an interest rate of 18% p.a. The creditor sent a reminder on 24.12.2015 for repayment. The debtor expressed inability to repay on 06.01.2016 and requested a 6-month extension. The debtor acknowledged the receipt of the loan on 27.10.2015. The debtor, through its letter dated 15.12.2016, expressed its inability to repay the money as the Company was incurring losses. The total amount claimed to be in default is ₹52,19,375/- along with the interest of

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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 allows a financial creditor to

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**Reasoning:** The court considered the submissions and evidence presented by the Financial Creditor,

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

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**Application:** The court found that the Financial Creditor had met the requirements of Section

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Vellurmadam…
- **Respondents:** M/s. Unitech…
- **Advocates:** S. Ragh…; Kailash L…

## Timeline

- **2015-10-26 — Loan Adv…**: The Creditor advanced an unsecured loan of…
- **2015-12-24 — Reminder…**: The Creditor sent a reminder to the…

## 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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