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

> NCLT judgment dated 2019-08-30. Citation: TCN-2019-NCLT-01671. 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-01671
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/v-s-matrix-private-limited-ib-976-nd-2019-b5baf34d

## 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/- due from V S Matrix. The petitioner was incorporated on 28.07.1984 and V S Matrix was incorporated on 14.06.1990. The FC disbursed Rs.1.7 crores to the CD under 4 loan agreements. The Corporate Debtor admitted to the default in a reply dated 02.01.2019.

## Facts

Peejay Finance Company Limited (the 'Financial Creditor' or FC) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against V S Matrix Private Limited (the 'Corporate Debtor' or CD). Peejay Finance claimed to be a financial creditor of V S Matrix, with a financial debt of Rs.40,93,862/- along with interest of Rs.12,64,710/-. The FC disbursed Rs.1.7 crores to the CD under 4 loan agreements dated 19.10.2016, 04.2.2017, 15.2.2017 & 12.7.2017. The CD admitted to the default in a reply dated 02.01.2019, citing financial distress. The FC proposed Mr. Vineet Aggarwal as the Interim Resolution Professional (IRP). The relevance of these facts is that they establish the existence of a financial debt and a default, which are the prerequisites

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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 allows a financial creditor to initiate the Corporate Insolvency

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**Reasoning:** The court considered the submissions made by both parties and the documents filed. The

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

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**Application:** The court found that Peejay Finance Company Limited was a financial creditor

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## Parties

- **Judges:** R. VARADH…; 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 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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