# In the matter of Amoghvarsh Houses Private Limited

> NCLT judgment dated 2024-01-05. Citation: TCN-2024-NCLT-03275. The case involves a petition filed by Good Fly Distributors Private Limited, the Financial…

- **Court:** NCLT
- **Order date:** 5 Jan 2024
- **Citation:** TCN-2024-NCLT-03275
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amoghvarsh-houses-private-limited-05aa82a8

## Summary

### Background

The case involves a petition filed by Good Fly Distributors Private Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Amoghvarsh Houses Private Limited (formerly known as Arihant Technoinfra Private Limited), the Corporate Debtor. The Financial Creditor claimed a default of Rs. 4,36,32,487.42, comprising principal and interest, arising from a loan provided to the Corporate Debtor in 2013. The Corporate Debtor contested the claim, asserting that the outstanding amount had been repaid.

## Facts

Good Fly Distributors Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Amoghvarsh Houses Private Limited (Corporate Debtor). The Financial Creditor claimed a total outstanding debt of Rs. 4,36,32,487.42, including principal and interest, arising from a loan provided in 2013 with interest rates of 13.25% until 31.03.2014 and 15% thereafter. The Financial Creditor submitted that the Corporate Debtor made some payments, including TDS, but a significant amount remained due. The Corporate Debtor argued that the loan was repayable when it was in a position to do so and that the entire outstanding amount of Rs. 2,47,64,188/- had been repaid in

…

## Issues and analysis

### Issue 1: Whether the Financial Creditor established the existence of a financial debt and default on the …

**Ratio:** To initiate CIRP under Section 7 of the IBC, the existence of a financial debt and

…

**Reasoning:** The NCLT found that the Financial Creditor failed to provide sufficient evidence to prove

…

**Interpretation:** The interpretation of Section 7 of the IBC requires the Financial Creditor to

…

**Application:** In this case, the Financial Creditor's failure to provide a loan agreement and

…

## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** Good Fly Distribut…
- **Respondents:** Amoghvarsh Houses…
- **Advocates:** Daryl…; Khushboo…; +1 more

## Timeline

- **2010-12-03 — Incorporation of…**: Amoghvarsh Houses Private Limited (formerly known as Arihant Technoinfra Private Limited)…
- **2013-01-01 — Loan Pro…**: The Financial Creditor provided a loan to the Corporate Debtor with interest chargeable…

## 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/amoghvarsh-houses-private-limited-05aa82a8