# In the matter of Ram Charan Company Private Limited CP-IB-157-CHE-2021

> NCLT judgment dated 2022-04-21. Citation: TCN-2022-NCLT-04926. Classic Exports filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 21 Apr 2022
- **Citation:** TCN-2022-NCLT-04926
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/ram-charan-company-private-limited-cp-ib-157-che-2021-197e2294

## Summary

### Background

Classic Exports filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ram Charan Company Private Limited, claiming a default on a financial debt.

## Facts

Classic Exports, the Financial Creditor, filed an application under Section 7 of the IBC, 2016, against Ram Charan Company Private Limited, the Corporate Debtor.

The Financial Creditor claimed a financial debt of Rs. 3,50,66,380/-, comprising a principal amount of Rs. 2,55,00,000/- and outstanding interest of Rs. 95,66,380/-, with the date of default mentioned as 30.11.2019.

The Corporate Debtor admitted to taking the financial loan but argued that the default occurred from March 2020 due to the COVID-19 pandemic, thus claiming the benefit of Section 10A of the IBC, 2016.

The Adjudicating Authority found that the default in respect of the principal amount occurred after the period specified under Section 10A of the IBC, 2016.

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has proved the existence of a 'financial debt' and 'default' on the …

**Ratio:** Yes, the Financial Creditor has established the financial loan disbursement to the

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**Reasoning:** The Adjudicating Authority considered the documents filed by the Financial Creditor and

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**Interpretation:** The existence of a financial debt and default was proved beyond reasonable

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**Application:** The Adjudicating Authority relied on the Demand Promissory Note and the

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## Parties

- **Judges:** R. Sucha…; SAMEER…
- **Appellants:** CLASSIC E…
- **Respondents:** Ram Charan…
- **Other parties:** S. Vasu…
- **Advocates:** Anantha Me…

## Timeline

- **2012-05-14 — Incorporati…**: Ram Charan Company Private Limited was…
- **2019-11-30 — Date of D…**: The date of default mentioned in…

## 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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