# In the matter of J R Modi Associates Ltd. COMPANY APPLICATION No. IB-1122-ND-2020

> NCLT judgment dated 2022-03-31. Citation: TCN-2022-NCLT-03449. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 31 Mar 2022
- **Citation:** TCN-2022-NCLT-03449
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/j-r-modi-associates-ltd-company-application-no-ib-1122-nd-2020-7e5ede45

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by the liquidator of Kaliber Associates Private Limited, Mr. Mohan Lal Jain, against J.R. Modi Associates Ltd. The applicant seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor due to default in repayment of a financial debt. Kaliber Associates Private Limited is undergoing liquidation process. The liquidator sought approval to initiate legal proceedings, including filing an application under Section 7 of IBC against various borrowers of Kaliber, including the corporate debtor. The applicant claims that the corporate debtor defaulted on a financial debt of Rs. 9,05,00,000/-. The applicant also submitted that Kaliber disbursed

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## Facts

Kaliber Associates Private Limited, through its liquidator Mr. Mohan Lal Jain, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against J.R. Modi Associates Ltd. seeking to initiate CIRP due to a default in repayment of a financial debt of Rs. 9,05,00,000/-. Kaliber is undergoing liquidation since 02.01.2020. The liquidator had previously obtained approval to initiate legal proceedings against borrowers, including the corporate debtor. Kaliber disbursed loans and advances totaling Rs. 29,05,00,000/- to the corporate debtor. The corporate debtor failed to respond to demand notices and the Section 7 application. The date of default is 18.01.2019, and the application was filed on 18.12.2020. The corporate debtor's registered office is in

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court reasoned that the applicant had provided sufficient evidence, including bank

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**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial creditor can

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** DEEPTI M…; SUMITA PURK…; +1 more
- **Appellants:** Mohan Lal…
- **Respondents:** J.R. Modi…

## Timeline

- **2003-02-13 — Incorporation of Kaliber Associates Private…**: Kaliber Associates Private Limited was incorporated under the provisions of the Companies…
- **2020-01-02 — Liquidation Order for Kaliber Associates…**: Kaliber Associates Private Limited is undergoing liquidation process vide order dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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