# In the matter of African Daisy Realty Pvt. Ltd.

> NCLT judgment dated 2024-01-24. Citation: TCN-2024-NCLT-02939. The case involves a Company Petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 24 Jan 2024
- **Citation:** TCN-2024-NCLT-02939
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/african-daisy-realty-pvt-ltd-40fcad93

## Summary

### Background

The case involves a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Idea Trading Company (Financial Creditor) against African Daisy Realty Pvt. Ltd. (Corporate Debtor) for defaulting on a loan repayment of Rs. 3,72,49,178 as of June 30, 2022. The Corporate Debtor had approached the Financial Creditor for a loan/finance facility of Rs. 2,20,15,266 for procuring tenders and government works contracts from Jalgaon Municipal Corporation. The loan was disbursed in multiple installments between December 2009 and May 2011. A Memorandum of Understanding (MoU) was executed on July 15, 2015, wherein the Corporate Debtor agreed to repay the sum by June 30, 2019. The Corporate Debtor failed to meet this obligation, leading to further

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## Facts

Idea Trading Company (Financial Creditor) filed a petition against African Daisy Realty Pvt. Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had taken a loan/finance facility of Rs. 2,20,15,266 from the Financial Creditor to procure tenders and government works contracts from Jalgaon Municipal Corporation. The loan was disbursed in installments between December 14, 2009, and May 12, 2011. A Memorandum of Understanding (MoU) was executed on July 15, 2015, agreeing to repay the sum by June 30, 2019. The Corporate Debtor failed to repay the amount by the agreed date. The Financial Creditor issued a Demand Promissory Note dated July 1, 2019. The Corporate Debtor again failed to repay the amount by June 30, 2022. The

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has proven the existence of debt and default on the part of the …

**Ratio:** The ratio is based on the principle that if a debt is due and there is a failure to

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**Reasoning:** The court reasoned that the Corporate Debtor admitted the debt in its reply, and the

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**Interpretation:** The interpretation is that a 'default' occurs when a debt is due and payable,

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

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Idea Trading…
- **Respondents:** African Daisy…

## Timeline

- **2009-12-14 — Loan Disbur…**: Rs.20,78,961/- disbursed…
- **2009-12-21 — Loan Disbur…**: Rs. 19,55,000/- disbursed…

## 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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