# In the matter of Wayne-Burt Aerospace Private Limited IA-1152-2020 IA-170-CHE-2021 in IBA-1277-2019

> NCLT judgment dated 2021-03-24. Citation: TCN-2021-NCLT-02575. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 24 Mar 2021
- **Citation:** TCN-2021-NCLT-02575
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/wayne-burt-aerospace-private-limited-ia-1152-2020-ia-170-che-2021-in-iba-1277-20-ae282823

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Sundaram BNP Paribas Home Finance Limited (Financial Creditor) against Wayne Burt Aerospace Private Limited (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a sum of Rs.3,85,63,843/- against the Corporate Debtor, whose account was classified as Non-Performing Asset (NPA) on 31.07.2018. The Corporate Debtor argued financial difficulties due to recession and lack of strategic investments, proposing a One Time Settlement (OTS), which the Financial Creditor did not accept.

## Facts

Sundaram BNP Paribas Home Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Wayne Burt Aerospace Private Limited (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a debt of Rs.3,85,63,843/-. The Corporate Debtor's account was classified as NPA on 31.07.2018. A loan agreement dated 17.06.2016 was in place, where the Financial Creditor sanctioned Rs.4,00,00,000/- to the Corporate Debtor. The Corporate Debtor was obligated to pay Rs.6,45,340/- per month for 120 months at 15% p.a. Mr. TGS Mahesh stood as guarantor. The Corporate Debtor executed a Memorandum of Deposit of Title Deeds. The Corporate Debtor failed to repay its

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7(5) of the Insolvency and Bankruptcy Code, 2016, stipulates that the

…

**Reasoning:** The Tribunal considered the facts, circumstances, and the position of law. It noted that

…

**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

…

**Application:** The Tribunal found that the Financial Creditor had demonstrated a default by

…

## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** Sundaram BNP…
- **Respondents:** Wayne Burt…

## Timeline

- **2016-06-17 — Loan Agre…**: Loan Agreement executed between…
- **2018-07-31 — NPA Decla…**: Account of Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/wayne-burt-aerospace-private-limited-ia-1152-2020-ia-170-che-2021-in-iba-1277-20-ae282823