# In the matter of Jai Gokul Towers Private Limited

> NCLT judgment dated 2024-01-01. Citation: TCN-2024-NCLT-03377. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 1 Jan 2024
- **Citation:** TCN-2024-NCLT-03377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jai-gokul-towers-private-limited-a6f548b5

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Miller Traders Private Limited (Financial Creditor) against Jai Gokul Towers Private Limited (Corporate Debtor) seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor disbursed a loan of Rs. 6 Crore to Accurate Traders Private Limited (Principal Borrower), with Jai Gokul Towers Private Limited acting as a guarantor. The Corporate Debtor failed to repay the outstanding amount of Rs. 8,43,25,953/-, which includes the principal amount and accrued interest. The date of default is claimed as November 24, 2021.

## Facts

Miller Traders Private Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Jai Gokul Towers Private Limited, the Corporate Debtor. The application seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Financial Creditor had disbursed a loan of Rs. 6 Crore to Accurate Traders Private Limited, the Principal Borrower, with the Corporate Debtor acting as a guarantor. An Irrevocable Deed of Guarantee was executed between the Financial Creditor and the Corporate Debtor on October 21, 2021. The Principal Borrower failed to repay the loan within the stipulated time. The total amount of debt due, including principal and interest, is Rs. 8,43,25,953/-. The

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## Issues and analysis

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

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

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**Reasoning:** The Adjudicating Authority considered the evidence presented, including the Deed of

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** In this case, the Financial Creditor demonstrated that the Corporate Debtor had

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Miller Traders…
- **Respondents:** Jai Gokul Towers…

## Timeline

- **2021-10-21 — Deed of Gua…**: Irrevocable Deed of Guarantee executed between the Financial Creditor and Corporate…
- **2021-10-21 — Loan Disbur…**: Disbursement of Rs. 6 Crore loan to Accurate…

## 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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