# In the matter of ARK Industries Private Limited

> NCLT judgment dated 2025-05-08. Citation: TCN-2025-NCLT-00103. Irabati Tie-Up Private Limited, the Financial Creditor/Applicant, filed an application under…

- **Court:** NCLT
- **Order date:** 8 May 2025
- **Citation:** TCN-2025-NCLT-00103
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ark-industries-private-limited-d1c11016

## Summary

### Background

Irabati Tie-Up Private Limited, the Financial Creditor/Applicant, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against ARK Industries Private Limited, the Corporate Debtor. The application was filed due to a default in payment of a loan amount of Rs. 1,09,20,000/-. The Corporate Debtor had approached the Applicant for a short-term loan of Rs. 1,04,00,000/- due to liabilities with the State Bank of India. A loan agreement was executed on 30.01.2024 with an interest rate of 12% per annum. The repayment was to be made in four installments starting from 01.04.2024. The Corporate Debtor defaulted on the first installment and only paid Rs. 85,000/- towards interest. The Applicant

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## Facts

Irabati Tie-Up Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against ARK Industries Private Limited (Corporate Debtor). The Corporate Debtor approached the Financial Creditor for a short-term loan of Rs. 1,04,00,000/- due to liabilities with State Bank of India. A loan agreement was executed on 30.01.2024 with an interest rate of 12% per annum. The repayment was to be made in four installments of Rs. 26,00,000/- each, commencing on 01.04.2024 and ending on 01.07.2024. The Corporate Debtor defaulted on the first installment and only paid Rs. 85,000/- towards interest. The Financial Creditor issued multiple letters and a Loan Recall Notice

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## Issues and analysis

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

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

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**Reasoning:** The Adjudicating Authority found that the Applicant had placed on record necessary

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The Adjudicating Authority applied Section 7 to the facts of the case and found

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Irabati Tie-Up…
- **Respondents:** ARK Industries…

## Timeline

- **2024-01-30 — Loan Agreement…**: A Loan Agreement was executed between Irabati Tie-Up Private Limited and ARK Industries…
- **2024-04-01 — Default…**: The Corporate Debtor defaulted on 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)

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