# In the matter of Arjun Chemicals Private Limited

> NCLT judgment dated 2024-06-28. Citation: TCN-2024-NCLT-01110. The application was filed by multiple financial creditors against Arjun Chemicals Private…

- **Court:** NCLT
- **Order date:** 28 Jun 2024
- **Citation:** TCN-2024-NCLT-01110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/arjun-chemicals-private-limited-9ac93af7

## Summary

### Background

The application was filed by multiple financial creditors against Arjun Chemicals Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The financial creditors claimed a total outstanding amount of Rs. 4,09,68,350/-, comprising Rs. 2,57,00,000 as principal and Rs. 1,52,68,350 as interest calculated at 18% per annum until 23.09.2022. The corporate debtor had taken loans from five financial creditors in August 2018 and executed promissory notes and issued postdated cheques. The corporate debtor made partial payments but defaulted on the outstanding amount. Demand notices were issued on 10.08.2022 and acknowledged by the corporate debtor on 13.08.2022, but no further payments

…

## Facts

The applicants, acting as financial creditors, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Arjun Chemicals Private Limited, the corporate debtor. The corporate debtor was incorporated on 22.11.1989. The financial creditors claimed that the corporate debtor owed a total sum of Rs. 4,09,68,350/-, which included a principal amount of Rs. 2,57,00,000 and interest of Rs. 1,52,68,350 calculated at 18% per annum until 23.09.2022. The debt fell due from May 2019. The corporate debtor had taken loans from five financial creditors in August 2018, executing promissory notes and issuing postdated cheques. The financial creditors disbursed an aggregated sum of Rs. 4,60,00,000. The corporate debtor agreed to repay the amount within 20

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** The ratio is based on the precedents set by the Supreme Court in Innoventive Industries

…

**Reasoning:** The court reasoned that the financial creditors had provided sufficient evidence of the

…

**Interpretation:** The interpretation of Section 7 of the IBC, 2016, and the Supreme Court's

…

**Application:** The ratio and reasoning were applied to the facts of the case, where the

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Gurudev Enterprise…
- **Respondents:** Arjun Chemicals…; ARJUN CHEMICALS…

## Timeline

- **2018-08-10 — Loan Agre…**: Corporate Debtor took loans from five financial…
- **2019-05-01 — Debt Due…**: The amount fell due…

## 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/arjun-chemicals-private-limited-9ac93af7