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

> NCLT judgment dated 2019-08-30. Citation: TCN-2019-NCLT-01662. 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-01662
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/v-s-matrix-private-limited-ib-976-nd-2019-6527646a

## 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.

## Facts

Peejay Finance Company Limited (the Financial Creditor) filed a petition under Section 7 of the IBC, 2016, against V S Matrix Private Limited (the Corporate Debtor), claiming a financial debt of Rs.40,93,862/- along with interest of Rs.12,64,710/-. The Financial Creditor claimed that a sum of Rs.1.7 crores was disbursed to the Corporate Debtor under 4 loan agreements. The Corporate Debtor admitted to the default in a reply dated 02.01.2019, citing financial distress. The Financial Creditor proposed Mr. Vineet Aggarwal as the Interim Resolution Professional (IRP). The court noted that the Corporate Debtor admitted to the default and that the Tribunal was left with no other alternative except to initiate the Corporate Insolvency Resolution Process (CIRP).

## Issues and analysis

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

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

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**Reasoning:** The court considered the submissions made by both parties and noted that the Corporate

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to recover

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**Application:** In this case, the Corporate Debtor admitted to the default. Therefore, the

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## Parties

- **Judges:** Sh.R. Varad…; K.K. V…
- **Appellants:** Peejay Finance…
- **Respondents:** V S Matrix…
- **Advocates:** Mohd. A…; Pawan Kum…; +1 more

## 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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