# In the matter of 4B Networks Private Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03145. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03145
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/4b-networks-private-limited-aff26c66

## Summary

### Background

The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Krishkan Investment Private Limited (Financial Creditor) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against 4B Networks Private Limited (Corporate Debtor). The claim is based on an unresolved financial debt of Rs. 1,20,54,818/- as of 10.08.2023. The financial facility was initially provided by Ace Housing and Construction Private Limited, which later assigned the debt to Krishkan Investment Private Limited.

## Facts

Krishkan Investment Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against 4B Networks Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The basis of the petition is an alleged default on a financial debt amounting to Rs. 1,20,54,818/- as on 10.08.2023. Ace Housing and Construction Private Limited initially provided the financial facility to 4B Networks Private Limited through an Inter Corporate Deposit agreement dated 22.01.2023, with a limit of Rs. 3,00,00,000/- at an interest rate of 24% per annum. Ace Housing and Construction Private Limited disbursed Rs. 2,20,00,000/- in two tranches on 01.05.2023 and 03.05.2023. Ace Housing and Construction Private Limited assigned the Inter

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has proven the existence of a financial debt and default by the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The NCLT considered the Inter Corporate Deposit agreement, ledger statements, and demand

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**Interpretation:** The existence of a financial debt and default are prerequisites for initiating

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**Application:** The NCLT applied the legal principle to the facts of the case, finding that the

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Krishkan Investmen…
- **Respondents:** 4B Networks…

## Timeline

- **2023-01-22 — Inter Corporate Deposit…**: Ace Housing and Construction Private Limited and 4B Networks Private Limited executed an…
- **2023-05-01 — First Disbu…**: Ace Housing and Construction Private Limited disbursed Rs. 2,00,00,000/- to 4B Networks…

## 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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