# In the matter of Ambe Securities Private Limited

> NCLT judgment dated 2023-12-18. Citation: TCN-2023-NCLT-00183. Meghna Devang Juthani, the Financial Creditor (FC), filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 18 Dec 2023
- **Citation:** TCN-2023-NCLT-00183
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ambe-securities-private-limited-7d7689a1

## Summary

### Background

Meghna Devang Juthani, the Financial Creditor (FC), filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Ambe Securities Private Limited, the Corporate Debtor (CD). The debt allegedly arose from a loan extended by the FC's late husband to the CD. The FC claimed a total amount of Rs. 1,70,51,918/- was due, including principal, interest, and recovery expenses. The FC identified herself as the wife and legal heir of the Late Devang Juthani and stated that her late husband extended an amount of Rs. 2,00,00,000/- to the CD as per mutually agreed terms. The CD repaid Rs. 85,00,000/- but failed to pay the remaining amount. The FC served the application to the CD via email and

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## Facts

Meghna Devang Juthani, the Financial Creditor (FC), filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), to initiate Corporate Insolvency Resolution Process (CIRP) against Ambe Securities Private Limited, the Corporate Debtor (CD). The FC claimed that her late husband extended a loan of Rs. 2,00,00,000/- to the CD, out of which Rs. 85,00,000/- was repaid. The remaining amount of Rs. 1,70,51,918/- (including principal, interest, and recovery expenses) was allegedly due. The FC identified herself as the legal heir of her late husband. The CD contended that the funds were not a loan but were given for investment purposes in futures and options of stocks and commodities. The CD argued that the investments were made through brokers at the

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is maintainable in the absence of a written loan …

**Ratio:** The presence of a loan agreement along with pertinent documents is imperative to

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**Reasoning:** The NCLT found that the FC failed to provide any documentary evidence such as a loan

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**Interpretation:** Section 7 of the IBC requires the existence of a financial debt and default for

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**Application:** In this case, the FC failed to provide sufficient evidence to prove the

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Meghna Devang…
- **Respondents:** Ambe Securities…

## Timeline

- **2020-04-06 — Application…**: Smt. Meghna Devang Juthani filed C.P. (IB) No. 974/MB/C-VI/2020 under section 7 of…
- **2018-03-07 — RTGS Tra…**: Rs. 50,00,000/- transferred…

## 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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