# In the matter of V S Matrix Private Limited IB-976-ND-2019

> NCLT judgment dated 2019-08-30. Citation: TCN-2019-NCLT-01652. Peejay Finance Company Limited filed a petition against V S Matrix Private Limited, claiming to…

- **Court:** NCLT
- **Order date:** 30 Aug 2019
- **Citation:** TCN-2019-NCLT-01652
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/v-s-matrix-private-limited-ib-976-nd-2019-15140899

## Summary

### Background

Peejay Finance Company Limited filed a petition against V S Matrix Private Limited, claiming to be the Financial Creditor (FC). The petition was filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. Peejay Finance claimed a financial debt of Rs. 40,93,862 along with interest of Rs. 12,64,710. The Corporate Debtor (CD), V S Matrix Private Limited, admitted to the default in a reply dated 02.01.2019, citing financial distress. The Financial Creditor proposed Mr. Vineet Aggarwal as the Insolvency Resolution Professional (IRP).

## Facts

Peejay Finance Company Limited (the Petitioner) filed a petition against V S Matrix Private Limited (the Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, claiming to be a Financial Creditor. Peejay Finance claimed a financial debt of Rs. 40,93,862 along with interest of Rs. 12,64,710. The Petitioner was incorporated on 28.7.1984 and represented by Mr. Sumit Bansal. V S Matrix Private Limited was incorporated on 14.6.1990 with an authorized share capital of Rs. 4,50,00,000 and a paid-up share capital of Rs. 4,11,84,195. The Corporate Debtor admitted to the default in a reply dated 02.01.2019, citing financial distress. The default was in relation to a loan account with dues of Rs. 40,93,862.00. The Petitioner disbursed Rs. 1.7 crores

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## Issues and analysis

### Issue 1: Whether the petition filed by Peejay Finance Company Limited under Section 7 of the IBC, 2016 is …

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate the Corporate

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**Reasoning:** The court reasoned that the Corporate Debtor admitted to the default in paying the

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**Interpretation:** Section 7 of the IBC, 2016 is interpreted to mean that if a financial creditor

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**Application:** In this case, the Corporate Debtor admitted to the default in its reply dated

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## Parties

- **Judges:** Sh.R. Varad…; K.K. V…
- **Appellants:** Peejay Finance…
- **Respondents:** V S Matrix…

## Timeline

- **1984-07-28 — Incorporation of Peejay…**: Peejay Finance Company…
- **1990-06-14 — Incorporation of V S…**: V S Matrix Private…

## 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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