# In the matter of Apex Ispat Private Limited

> NCLT judgment dated 2024-03-12. Citation: TCN-2024-NCLT-02114. M/s HY Link Overseas Private Limited, the Financial Creditor, filed a petition under Section 7…

- **Court:** NCLT
- **Order date:** 12 Mar 2024
- **Citation:** TCN-2024-NCLT-02114
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/apex-ispat-private-limited-6ea4411f

## Summary

### Background

M/s HY Link Overseas Private Limited, 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 M/s Apex Ispat Private Limited, the Corporate Debtor. The Financial Creditor sanctioned a loan facility of Rs. 7.25 Cr to the Corporate Debtor on 01.09.2017, for a period of 18 months i.e. till 31.03.2019. Out of the sanctioned amount, Rs. 7.05 Cr was disbursed. The Financial Creditor claimed that Rs. 2.30 Cr was still outstanding. The Corporate Debtor contended that the entire amount of Rs. 7.05 Cr was repaid, including payments made to M/s Laxmi Pipes Ltd. on the instructions of the Financial Creditor.

## Facts

M/s HY Link Overseas Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s Apex Ispat Private Limited (Corporate Debtor). The Financial Creditor sanctioned a loan of Rs. 7.25 Cr to the Corporate Debtor on 01.09.2017, with a repayment period until 31.03.2019, and disbursed Rs. 7.05 Cr. The Financial Creditor claimed Rs. 2.30 Cr was outstanding. The Corporate Debtor argued that the entire loan was repaid, including Rs. 2.1 Cr paid to M/s Laxmi Pipes Ltd. on the Financial Creditor's instructions. The Financial Creditor alleged fabrication of documents by the Corporate Debtor. The Corporate Debtor provided bank and ledger statements as proof of repayment. The key fact is whether the

…

## Issues and analysis

### Issue 1: Whether there is a 'default' on …

**Ratio:** The Adjudicating Authority must determine if a 'debt' exists and if there is a 'default'

…

**Reasoning:** The Adjudicating Authority considered the documents placed on record, including bank

…

**Interpretation:** The term 'default' under the IBC refers to the non-payment of debt when it has

…

**Application:** Based on the evidence presented by the Corporate Debtor, the Adjudicating

…

## Parties

- **Judges:** MAHENDRA KHANDELWA…; Sanjeev R…
- **Appellants:** M/S HY LINK…
- **Respondents:** M/S APEX ISPAT…
- **Advocates:** Mohit Nan…; Deepak B…; +1 more

## Timeline

- **2017-09-01 — Loan Sanc…**: Financial Creditor sanctioned a loan facility…
- **2019-03-31 — Loan Repaymen…**: Loan repayment period…

## 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/apex-ispat-private-limited-6ea4411f