# In the matter of Zynke Exports (P) Ltd. IB-580-PB-2017

> NCLT judgment dated 2018-06-08. Citation: TCN-2018-NCLT-01305. Duane Park (P) Ltd, the Financial Creditor, filed an application against Zynke Exports (P) Ltd,…

- **Court:** NCLT
- **Order date:** 8 Jun 2018
- **Citation:** TCN-2018-NCLT-01305
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/zynke-exports-p-ltd-ib-580-pb-2017-a51d4684

## Summary

### Background

Duane Park (P) Ltd, the Financial Creditor, filed an application against Zynke Exports (P) Ltd, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, due to a default in loan repayment. The loan agreement was dated 22.6.2017. The Financial Creditor claimed that Rs.2,10,00,000/- remained unpaid. A notice of default was issued on 28.9.2017, followed by a demand notice on 06.10.2017. The Corporate Debtor acknowledged its inability to repay the amount.

## Facts

Duane Park (P) Ltd (Financial Creditor) filed an application against Zynke Exports (P) Ltd (Corporate Debtor) under Section 7 of IBC, 2016, due to non-payment of Rs.2,10,00,000/- arising from a loan agreement dated 2017-06-22. The Financial Creditor issued a default notice on 2017-09-28 and a demand notice on 2017-10-06. The Corporate Debtor admitted its inability to repay the amount and did not oppose the application. This admission of default by the Corporate Debtor was a key fact that led to the admission of the petition.

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the IBC, 2016, should be …

**Ratio:** An application under Section 7 of the IBC, 2016, can be admitted if the Corporate Debtor

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**Reasoning:** The court reasoned that since the Corporate Debtor admitted to the default and did not

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**Interpretation:** Section 7 of the IBC, 2016, allows a Financial Creditor to initiate the

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**Application:** In this case, the Corporate Debtor's admission of default, coupled with the

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## Parties

- **Judges:** R. VARADH…; Deepa Kr…; +1 more
- **Appellants:** Duane Park…
- **Respondents:** Zyanke Exports…
- **Advocates:** Anush R…; Sushant M…

## Timeline

- **2017-06-22 — Loan Agreeme…**: Date of the loan agreement between Duane…
- **2017-09-28 — Default N…**: Financial Creditor issued a notice of…

## 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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