# In the matter of Innova Plastic Technologies Private Limited C.P. No. 964-IBC-MB-2020

> NCLT judgment dated 2022-07-27. Citation: TCN-2022-NCLT-01554. The case involves a petition filed by Intec Capital Limited, a Non-Banking Financial…

- **Court:** NCLT
- **Order date:** 27 Jul 2022
- **Citation:** TCN-2022-NCLT-01554
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/innova-plastic-technologies-private-limited-cp-no-964-ibc-mb-2020-1cae5b44

## Summary

### Background

The case involves a petition filed by Intec Capital Limited, a Non-Banking Financial Institution, against Innova Plastic Technologies Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had approached the Financial Creditor for a loan of Rs. 1,01,20,000 for acquiring machinery. The Corporate Debtor defaulted on the repayment schedule, leading to legal proceedings and an arbitration award in favor of the Financial Creditor. Despite the arbitration award, the Corporate Debtor failed to comply, prompting the Financial Creditor to file the Section 7 petition.

## Facts

Intec Capital Limited, a Non-Banking Financial Institution, filed a petition against Innova Plastic Technologies Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). Innova Plastic Technologies Private Limited had taken a loan of Rs. 1,01,20,000 from Intec Capital Limited for acquiring machinery. The loan was secured by hypothecation. The loan amount was disbursed to the Machine Vendor on behalf of the Corporate Debtor on May 18, 2015, and received by the Machine Vendor on May 19, 2015. The loan was to be repaid in 48 monthly installments with 14% interest per annum. The Corporate Debtor defaulted on the repayment schedule, leading to legal proceedings. An arbitration award was

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in repaying …

**Ratio:** The principle is that if a corporate debtor fails to repay a financial debt to a

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**Reasoning:** The NCLT observed that the Corporate Debtor had defaulted in repaying the loan availed

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**Interpretation:** The interpretation is that any failure to meet the repayment obligations as per

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**Application:** The Corporate Debtor's failure to make timely payments, as evidenced by the

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## Parties

- **Judges:** H.V. Subb…; ANURADHA SANJAY…
- **Appellants:** Intec Capital…
- **Respondents:** Innova Plastic…
- **Advocates:** Nidhi…

## Timeline

- **2015-03-16 — Loan Appli…**: The Corporate Debtor submitted a loan…
- **2015-04-30 — Loan Agre…**: Execution of the Loan Agreement between the…

## 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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