# In the matter of Aastik Trading Private Limited

> NCLT judgment dated 2024-03-05. Citation: TCN-2024-NCLT-02213. Mahipal Enterprises, the Financial Creditor, filed a petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 5 Mar 2024
- **Citation:** TCN-2024-NCLT-02213
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aastik-trading-private-limited-6b6ea256

## Summary

### Background

Mahipal Enterprises, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Aastik Trading Private Limited, the Corporate Debtor. The petition was based on the Corporate Debtor's failure to repay a debt of Rs. 1,80,28,686/-. The date of default was 01.10.2021. The Corporate Debtor had obtained a loan facility of Rs. 1,08,00,000/- from Cordcon Builders Private Limited, which was later assigned to the Financial Creditor through a Deed of Assignment dated 01.07.2020. The Corporate Debtor acknowledged the debt and requested extensions for repayment but failed to make the payments.

## Facts

Mahipal Enterprises (Financial Creditor) filed a petition to initiate CIRP against Aastik Trading Private Limited (Corporate Debtor) due to a default of Rs. 1,80,28,686/- with the default date being 01.10.2021. The Corporate Debtor had initially obtained a loan of Rs. 1,08,00,000/- from Cordcon Builders Private Limited (Lender) in 2017-2019. This loan was later assigned to the Financial Creditor via a Deed of Assignment dated 01.07.2020. The repayment was agreed to be in four installments with 24% interest. The Corporate Debtor failed to meet these payment obligations, leading the Financial Creditor to issue demand notices. The Corporate Debtor acknowledged the debt and requested extensions, citing financial difficulties, but still failed to make payments. The

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted …

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

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**Reasoning:** The court noted that the Corporate Debtor acknowledged the debt in its communications and

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**Interpretation:** The existence of a financial debt and a default in its repayment are

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**Application:** The Corporate Debtor's acknowledgment of the debt and failure to repay, coupled

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Mahipal Enterprise…
- **Respondents:** Aastik Trading…

## Timeline

- **2017-09-01 — Loan Agre…**: Loan Agreement executed between Cordcon Builders Private Limited (Lender) and Aastik…
- **2020-07-01 — Deed of Ass…**: Deed of Assignment executed between Cordcon Builders Private Limited (Lender) and Mahipal…

## 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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