# In the matter of Vast Media Network Private Limited CP 1709 (IB)-MB-2017

> NCLT judgment dated 2019-04-02. Citation: TCN-2019-NCLT-04180. Shah Mehta Holding Private Limited, the Financial Creditor, filed a petition under Section 7 of…

- **Court:** NCLT
- **Order date:** 2 Apr 2019
- **Citation:** TCN-2019-NCLT-04180
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vast-media-network-private-limited-cp-1709-ib-mb-2017-a3f191ee

## Summary

### Background

Shah Mehta Holding Private Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against Vast Media Network Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP) due to default in repayment of a principal amount of ₹50,00,000 and penal interest of ₹24,34,907. The petition was filed on 08.12.2017.

## Facts

Shah Mehta Holding Private Limited (Financial Creditor) granted a temporary loan of ₹50,00,000 to Vast Media Network Private Limited (Corporate Debtor) on 28.10.2015, for a period of 15 days with an interest rate of 12% p.a. The disbursement date was 28.10.2015, and the due date was 12.11.2015. As security, the Corporate Debtor was to provide a post-dated cheque and personal guarantees from its directors, Mr. Abhijeet Ashok Rane and Mrs. Anagha Ashok Rane. The Financial Creditor provided a certificate from HDFC Bank dated 24.11.2017, confirming the debit of ₹50,00,000 from their account on 29.10.2015 to the Corporate Debtor. A promissory note dated 28.10.2015, and two deeds of guarantee dated 31.10.2015, were also provided. A cheque of ₹50,00,000 drawn by the Corporate

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the I&B Code, 2016 for initiating Corporate …

**Ratio:** Section 7 of the I&B Code allows a financial creditor to initiate CIRP against a

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**Reasoning:** The NCLT found that the application was complete, the existing financial debt was more

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**Interpretation:** Section 7 of the I&B Code provides a mechanism for financial creditors to

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**Application:** The NCLT applied Section 7 of the I&B Code to the facts of the case,

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Shah Mehta…
- **Respondents:** Vast Media…

## Timeline

- **2015-10-28 — Loan Agre…**: Petitioner entered into a loan agreement with the Corporate Debtor granting a loan of…
- **2015-10-28 — Disbursemen…**: The disbursement date…

## 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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