# In the matter of EUROPEAN PROJECTS & AVIATION LIMITED

> NCLT judgment dated 2025-03-27. Citation: TCN-2025-NCLT-00297. Dabir Developers Private Limited, the Financial Creditor, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 27 Mar 2025
- **Citation:** TCN-2025-NCLT-00297
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/european-projects-amp-aviation-limited-bd7e80bb

## Summary

### Background

Dabir Developers Private Limited, the Financial Creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against European Projects & Aviation Limited, the Corporate Debtor. The petition was filed due to a default on a debt of Rs. 1,71,45,316/-. The Financial Creditor and Corporate Debtor had entered into a loan agreement, and the Corporate Debtor had sought multiple extensions to repay the outstanding amount. The Financial Creditor issued loan recall notices and triggered the Default Confirmation process through NeSL before initiating the legal action.

## Facts

Dabir Developers Private Limited (Financial Creditor) filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against European Projects & Aviation Limited (Corporate Debtor) due to a default on a debt of Rs. 1,71,45,316/-. The Corporate Debtor had approached the Financial Creditor for a short-term business loan, and a loan agreement was executed on March 28, 2023. The Financial Creditor disbursed Rs.1,97,50,000/- on March 28, 2023. The Corporate Debtor made part repayments totaling Rs. 49,50,000/-. Despite repeated follow-ups, the Corporate Debtor failed to repay the balance outstanding. The Financial Creditor issued a letter demanding repayment of the balance ₹1,60,60,000/-. The Corporate Debtor sought multiple extensions of time to repay the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on a …

**Ratio:** The existence of debt and occurrence of default are essential prerequisites for admitting

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**Reasoning:** The Tribunal relied on the documentary evidence, including the loan agreement, loan

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

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**Application:** The Tribunal applied the ratio to the facts of the case and found that the

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## Parties

- **Judges:** Sushil Mahadeorao…; Shri. Charanjeet…
- **Appellants:** Dabir Developers…
- **Respondents:** European Projects…

## Timeline

- **2023-02-27 — Request fo…**: The Corporate Debtor approached the Financial Creditor with a request for a short-term…
- **2023-03-06 — Meeting Co…**: A meeting was convened between the representatives of Dabir Developers Private Limited…

## 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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