# In the matter of Intense Fitness and Spa Private Limited Company Petition No. (IB)-228-(ND)-2022

> NCLT judgment dated 2022-08-02. Citation: TCN-2022-NCLT-01493. CVR Holdings Private Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 2 Aug 2022
- **Citation:** TCN-2022-NCLT-01493
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/intense-fitness-and-spa-private-limited-company-petition-no-ib-228-nd-2022-e4690c2c

## Summary

### Background

CVR Holdings Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Intense Fitness and Spa Private Limited. CVR Holdings claimed that Intense Fitness defaulted on a financial facility availed through an Assignment Agreement dated 2020-02-10, repayable by 2020-12-31. Intense Fitness sought extensions due to the COVID-19 pandemic, but CVR Holdings demanded repayment. The application was filed due to the alleged default of Rs. 11,08,94,834/- as of 2022-03-01.

## Facts

CVR Holdings Private Limited, the applicant, is a company registered under the Companies Act, 1956. Intense Fitness and Spa Private Limited, the respondent, is a company incorporated under the Companies Act, 2013. CVR Holdings claimed that Intense Fitness availed a financial facility through an Assignment Agreement dated 2020-02-10, with a repayment deadline of 2020-12-31. The agreement stipulated a 9% per annum interest rate effective from 2021-01-01 for any delays, with a final repayment deadline of 2021-06-30. Intense Fitness requested extensions for repayment due to the COVID-19 pandemic, which CVR Holdings initially granted with interest-free periods. However, CVR Holdings later demanded repayment. As of 2022-03-01, CVR Holdings claimed a default of Rs.

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** An application under Section 7 of the IBC is maintainable if the debt is proven to be due

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**Reasoning:** The court reasoned that the application is maintainable because the debt was proven to be

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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 court applied this ratio to the facts by confirming that the debt was due

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## Parties

- **Judges:** DHARMINDER…; BINOD KUMAR…
- **Appellants:** CVR Holdings…
- **Respondents:** Intense Fitness…

## Timeline

- **2020-02-10 — Assignment Ag…**: Assignment Agreement between CVR Holdings and…
- **2020-12-31 — Original Repayment…**: Original deadline for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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