# In the matter of Isinox Limited CP (IB) No. 216-MB-IV-2022

> NCLT judgment dated 2023-03-17. Citation: TCN-2023-NCLT-04200. The application, CP (IB) No. 216/MB/C-IV/2022, was filed by Somesh A. Naik & Ors., the…

- **Court:** NCLT
- **Order date:** 17 Mar 2023
- **Citation:** TCN-2023-NCLT-04200
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/isinox-limited-cp-ib-no-216-mb-iv-2022-755482bd

## Summary

### Background

The application, CP (IB) No. 216/MB/C-IV/2022, was filed by Somesh A. Naik & Ors., the Financial Creditors/Applicants, under section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code), seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Isinox Limited, the Corporate Debtor. The applicants claimed a total default of Rs.4,37,14,449/-, comprising Rs.2,34,17,965/- as the principal amount and the remaining as interest. The Corporate Debtor purchased goods from Manhar Alloys Private Limited, with an understanding to pay within 120 days. The Financial Creditors were lending money through CRED, a fintech platform, against bills to various parties, and disbursed amounts to the Corporate Debtor under a facilitation arrangement. The

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## Facts

Somesh A. Naik & Ors., the Financial Creditors/Applicants, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Isinox Limited, the Corporate Debtor. The applicants claimed a total default of Rs.4,37,14,449/-, comprising Rs.2,34,17,965/- as the principal amount and the remaining as interest. The Date of Default is stated to be 31.10.2021. The Financial Creditors were lending money through CRED, a fintech platform, against bills to various parties, and disbursed amounts to the Corporate Debtor under a facilitation arrangement. The Corporate Debtor was to repay the amount within 60 days from the date of disbursement. The Corporate Debtor purchased goods from Manhar

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditors under Section 7 of the I&B Code is …

**Ratio:** Section 7 of the I&B Code allows a financial creditor, either by itself or jointly

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**Reasoning:** The Tribunal found that the application was complete, filed under the proper form, and

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**Interpretation:** Section 7 provides the mechanism for financial creditors to initiate CIRP when

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

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Somesh A.…
- **Respondents:** ISINOX LI…
- **Advocates:** Shavez…; Ragini…

## Timeline

- **2021-10-31 — Date of D…**: The Date of Default is stated to be…
- **2021-12-30 — Petition…**: The Petition is filed…

## 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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