# In the matter of Horizon Outsource Solutions Private Limited C.P. No. 604-IBC-MB-2022

> NCLT judgment dated 2023-03-15. Citation: TCN-2023-NCLT-04234. The case pertains to a company petition filed by Mr. Sagar Mohan Panchmatiya (Financial…

- **Court:** NCLT
- **Order date:** 15 Mar 2023
- **Citation:** TCN-2023-NCLT-04234
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/horizon-outsource-solutions-private-limited-cp-no-604-ibc-mb-2022-0a92fcba

## Summary

### Background

The case pertains to a company petition filed by Mr. Sagar Mohan Panchmatiya (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Horizon Outsource Solutions Private Limited (Corporate Debtor). The Financial Creditor claims that the Corporate Debtor defaulted on a business loan of Rs. 1.5 crores, with Rs. 1,47,00,000/- becoming due and payable. The Corporate Debtor acknowledged the debt but cited financial difficulties and the impact of COVID-19 as reasons for their inability to repay.

## Facts

Mr. Sagar Mohan Panchmatiya (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Horizon Outsource Solutions Private Limited (Corporate Debtor). The Financial Creditor claimed that a business loan of Rs. 1.5 crores was given to the Corporate Debtor, out of which Rs. 1,47,00,000/- became due and payable. The disbursement date was 2017-06-06, and the date of default was 2019-06-08. The Financial Creditor sent reminder letters on 2019-07-01 and 2021-02-01. The Corporate Debtor acknowledged the debt in letters dated 2019-07-18 and 2021-02-10, citing financial crises. The Corporate Debtor admitted to availing the loan in 2017 but cited financial crunch and COVID-19 as reasons for their inability to pay.

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## Issues and analysis

### Issue 1: Whether the company petition filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** The legal principle applied is that if a corporate debtor admits to a debt and defaults

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**Reasoning:** The court reasoned that the Corporate Debtor had admitted to the debt in its

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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 Corporate Debtor admitted to the debt and the default. The

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** Sagar Mohan…
- **Respondents:** Horizon Outsource…

## Timeline

- **2017-06-06 — Date of Disbu…**: The date on which the business loan was…
- **2019-06-08 — Date of D…**: The date on which the Corporate Debtor…

## 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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