# In the matter of Dharti Proteins Limited

> NCLT judgment dated 2024-04-29. Citation: TCN-2024-NCLT-01536. Goenka Business & Finance Limited filed a Company Petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 29 Apr 2024
- **Citation:** TCN-2024-NCLT-01536
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dharti-proteins-limited-0ea8b695

## Summary

### Background

Goenka Business & Finance Limited filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Dharti Proteins Limited. Goenka Business & Finance Limited, the financial creditor, claimed that Dharti Proteins Limited defaulted on a loan of Rs. 1,10,00,000 granted on 25.03.2023. A loan agreement was executed, and a mortgage was created by depositing Title Deeds. The corporate debtor also executed a Demand Promissory Note. The loan was to be repaid within one year with a compounding interest of 12% per annum with monthly rests. Despite follow-ups and a demand notice issued on 14.07.2023, the corporate debtor failed to repay the outstanding dues, which amounted to Rs.

…

## Facts

Goenka Business & Finance Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Dharti Proteins Limited (Corporate Debtor). The Financial Creditor granted a loan of Rs. 1,10,00,000 to the Corporate Debtor on 25.03.2023. A loan agreement was executed, and a mortgage was created by depositing Title Deeds. The Corporate Debtor also executed a Demand Promissory Note. The loan was to be repaid within one year with a compounding interest of 12% per annum with monthly rests. The Corporate Debtor failed to repay the interest, leading the Financial Creditor to issue a Demand Notice on 14.07.2023. Despite the notice, the Corporate Debtor failed to repay the

…

## Issues and analysis

### Issue 1: Whether the requirements of Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating …

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

…

**Reasoning:** The Adjudicating Authority noted that the debt and default were established by the

…

**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to recover

…

**Application:** In this case, the Financial Creditor provided evidence of the loan agreement,

…

## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Goenka Business &…
- **Respondents:** Dharti Proteins…

## Timeline

- **2023-03-25 — Loan Gra…**: Goenka Business & Finance Limited granted a loan of Rs. 1,10,00,000 to Dharti Proteins…
- **2023-07-14 — Demand Notice…**: Goenka Business & Finance Limited issued a demand notice to Dharti Proteins Limited for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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/dharti-proteins-limited-0ea8b695