# In the matter of Amar Prakaash Developers Private Limited CP(IB)-73-CHE-2022

> NCLT judgment dated 2023-04-18. Citation: TCN-2023-NCLT-03749. K. V. Capital, the financial creditor, filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 18 Apr 2023
- **Citation:** TCN-2023-NCLT-03749
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amar-prakaash-developers-private-limited-cpib-73-che-2022-5f4ee90d

## Summary

### Background

K. V. Capital, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Amar Prakaash Developerss Private Limited, the corporate debtor. The financial creditor claimed that the corporate debtor had defaulted on a payment of Rs. 7,08,14,599. The corporate debtor had approached the financial creditor in 2018 for a loan of Rs. 3.00 Crores to complete a construction project. A mortgage deed was executed in favor of the financial creditor on 10.09.2018. The financial creditor issued a demand notice on 08.02.2022, which the corporate debtor replied to, admitting the borrowing and the mortgage but contending that a NOC was withheld and a six-month notice was

…

## Facts

K. V. Capital, a registered partnership firm, extended a loan of Rs. 3.00 Crores to Amar Prakaash Developerss Private Limited in 2018 to complete a construction project in Pallavaram Taluk, Kancheepuram. The corporate debtor executed a mortgage deed in favor of the financial creditor on 10.09.2018, registered as document number 5056 of 2018. The extent of land was 2,590 sq. ft. together with 10,798 Sq. Ft. as super built up area at First Floor, Club Aurum Building, Thirumudivakkam, Kancheepuram District. The agreed rate of interest was 27% p.a. The financial creditor claimed a default of Rs. 7,08,14,599 as of 31.12.2021. A demand notice was sent on 08.02.2022 and delivered on 12.02.2022. The corporate debtor replied on 01.03.2022, admitting the borrowing and mortgage

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

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

…

**Reasoning:** The Tribunal found that the Financial Creditor had submitted sufficient evidence to prove

…

**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues by

…

**Application:** The Tribunal applied Section 7 to the facts of the case, finding that the

…

## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** K. V. Ca…
- **Respondents:** Amar Prakaash…

## Timeline

- **2018-01-01 — Loan Appli…**: Corporate Debtor approached Financial…
- **2018-07-31 — Board Reso…**: Board Resolution of the…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amar-prakaash-developers-private-limited-cpib-73-che-2022-5f4ee90d