# In the matter of Dreams Construction (Pune) Private Limited CP (IB) 59-MB-2020

> NCLT judgment dated 2023-02-03. Citation: TCN-2023-NCLT-04802. The case involves a petition filed by Mr. Pradeep Devichand Agrawal, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 3 Feb 2023
- **Citation:** TCN-2023-NCLT-04802
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dreams-construction-pune-private-limited-cp-ib-59-mb-2020-9cd47089

## Summary

### Background

The case involves a petition filed by Mr. Pradeep Devichand Agrawal, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Dreams Construction (Pune) Private Limited, the Corporate Debtor. The Financial Creditor claimed a default of Rs. 5,26,70,291/- including accrued interest. The Corporate Debtor was incorporated on 09.08.2011. The Financial Creditor submitted that a loan was extended to the Corporate Debtor from 24.03.2015 to 16.05.2017 for business expansion, disbursing Rs. 3,83,00,000/- in various tranches. The Corporate Debtor failed to repay the loan, leading to the issuance of a legal notice on 01.10.2019 demanding repayment of Rs. 4,00,61,378/-. The Corporate

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## Facts

Mr. Pradeep Devichand Agrawal, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Dreams Construction (Pune) Private Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor defaulted on a payment of Rs. 5,26,70,291/-, which included accrued interest up to 31.03.2019. The loan was extended from 24.03.2015 to 16.05.2017 for the Corporate Debtor's business expansion, with a total disbursement of Rs. 3,83,00,000/-. The date of default was stated as 31.03.2019. A legal notice was sent to the Corporate Debtor on 01.10.2019 demanding repayment of Rs. 4,00,61,378/-. The Corporate Debtor did not file any written reply to the

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, for …

**Ratio:** A petition under Section 7 of the IBC is maintainable if there is a debt and a default in

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**Reasoning:** The Adjudicating Authority observed that the Financial Creditor had provided evidence of

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** In this case, the Financial Creditor provided bank statements and the Corporate

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Pradeep Devichand…
- **Respondents:** Dreams Constructio…

## Timeline

- **2011-08-09 — Incorporation of…**: Dreams Construction (Pune) Private Limited was…
- **2015-03-24 — Loan Extensio…**: Loan was extended to the Corporate Debtor from 24.03.2015 to 16.05.2017 for financial…

## 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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