# In the matter of Elly Realcon Private Limited I.A.-3585-2022 in Company Petition No. IB-84(ND)-2021

> NCLT judgment dated 2023-03-14. Citation: TCN-2023-NCLT-04255. The present petition, CP (IB)-84(ND)/2022, was filed under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 14 Mar 2023
- **Citation:** TCN-2023-NCLT-04255
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/elly-realcon-private-limited-ia-3585-2022-in-company-petition-no-ib-84nd-2021-09abafe6

## Summary

### Background

The present petition, CP (IB)-84(ND)/2022, was filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. Elly Realcon Private Limited. The basis for the petition was the alleged default in payment of interest on the principal loan amount as stipulated under loan agreements dated 25.07.2017 and 25.02.2019. The Financial Creditor, M/s. Endless Services Private Limited, had issued a demand notice on 10.12.2019 regarding the unpaid financial debt.

## Facts

M/s. Endless Services Private Limited (Financial Creditor) filed a petition under Section 7 of the IBC, 2016, against M/s. Elly Realcon Private Limited (Corporate Debtor) due to default in payment of interest on principal loan amounts. Loan agreements were executed on 25.07.2017 and 25.02.2019. The Financial Creditor issued a demand notice on 10.12.2019. The loan amount sanctioned on 25.07.2017 was Rs. 3,00,00,000/- at 2.6% p.m. interest, and on 25.02.2019, Rs. 1,00,00,000/- at 3% p.m. interest. The Financial Creditor made several disbursements to the Corporate Debtor between 12.04.2017 and 26.02.2019, totaling Rs. 4,00,00,000/-. The Corporate Debtor issued post-dated cheques, but only two cheques amounting to Rs. 30,00,000/- each were deposited and bounced on

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## Issues and analysis

### Issue 1: Whether the present petition under Section 7 of the IBC, 2016 is complete in all respects and there …

**Ratio:** Section 7(5)(a) of the Insolvency and Bankruptcy Code, 2016, mandates the Adjudicating

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**Reasoning:** The court observed that the Financial Creditor had provided sufficient evidence,

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

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**Application:** Based on the evidence presented, the court determined that the Financial

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## Parties

- **Judges:** BACHU VENKAT…; BINOD KUMAR…
- **Appellants:** M/s Endless…
- **Respondents:** Elly Realcon…; M/s. Elly Realcon…

## Timeline

- **2017-07-25 — Loan Agre…**: Loan agreement executed between Financial Creditor and Corporate Debtor for…
- **2019-02-25 — Loan Agre…**: Loan agreement executed between Financial Creditor and Corporate Debtor for…

## 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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