# In the matter of Gwalior Distilleries Limited (MP) CP (IB) No. 53 of 2020

> NCLT judgment dated 2022-07-01. Citation: TCN-2022-NCLT-01957. Mayuri Fincap Pvt Ltd filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 1 Jul 2022
- **Citation:** TCN-2022-NCLT-01957
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gwalior-distilleries-limited-mp-cp-ib-no-53-of-2020-0552d487

## Summary

### Background

Mayuri Fincap Pvt Ltd filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Gwalior Distilleries Limited, alleging default in payment of a financial debt. The financial creditor claimed that the corporate debtor failed to repay a loan of Rs. 5,00,00,000 disbursed between November 2018 and February 2020, with the total outstanding debt amounting to Rs. 6,19,33,390, including interest. The corporate debtor contested the claim, asserting that the disbursed amount was towards the purchase of its shares by the financial creditor, not a loan.

## Facts

Mayuri Fincap Pvt Ltd (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Gwalior Distilleries Limited (Corporate Debtor) for defaulting on a financial debt. The Financial Creditor disbursed a loan of Rs. 5,00,00,000 to the Corporate Debtor between November 2018 and February 2020, as per a loan agreement dated 18.11.2018. The total outstanding debt, including interest, amounted to Rs. 6,19,33,390, with the date of default being 19.11.2019. The Corporate Debtor issued two cheques totaling Rs. 5,50,00,000, which were dishonored due to insufficient funds on 22.01.2020. The Financial Creditor served a demand notice, but the Corporate Debtor failed to pay the outstanding amount. The Corporate Debtor argued that the

…

## Issues and analysis

### Issue 1: Whether the application filed 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

…

**Reasoning:** The court considered the evidence presented by both parties and determined that the

…

**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

…

**Application:** The court applied Section 7 to the facts of the case, finding that the

…

## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Mayuri Fincap Pvt…
- **Respondents:** Gwalior Distilleri…; Gwalior Distilleri…
- **Advocates:** Kiran…; Sanjeev Cha…

## Timeline

- **2018-11-18 — Loan Agre…**: Loan agreement dated 18.11.2018 between Mayuri Fincap Pvt Ltd and Gwalior Distilleries…
- **2018-11-19 — Loan Disbursem…**: Loan amount disbursed between…

## 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)

---

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/gwalior-distilleries-limited-mp-cp-ib-no-53-of-2020-0552d487