# In the matter of Jairam Foundry Private Limited

> NCLT judgment dated 2023-04-28. Citation: TCN-2023-NCLT-03579. The case pertains to a petition filed under Section 7 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 28 Apr 2023
- **Citation:** TCN-2023-NCLT-03579
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jairam-foundry-private-limited-1ebfda2c

## Summary

### Background

The case pertains to a petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016, by financial creditors against M/s. Jairam Foundry Private Limited, the corporate debtor, for non-payment of Rs. 3,48,78,965/- together with interest. The financial creditors claimed to have lent an amount of Rs.1,44,70,439/- to the corporate debtor as an unsecured loan since 2012, with an assurance of repayment on demand along with interest. The corporate debtor allegedly defaulted in paying the principal and interest despite reminders. The financial creditors also presented dishonored cheques issued by the corporate debtor. The corporate debtor disputed the rate of interest but not the debt itself.

## Facts

Smt. Pushpa Soni and other financial creditors filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against M/s. Jairam Foundry Private Limited, alleging a default of Rs. 3,48,78,965/-. The financial creditors claimed to have lent Rs. 1,44,70,439/- as an unsecured loan in 2012, with interest at 24% p.a. for Late Sri Sampath Kumar Lahoti and 18% p.a. for other creditors. The corporate debtor allegedly defaulted on repayments. Cheques issued by the corporate debtor were dishonored, leading to complaints under Section 138 of the Negotiable Instruments Act. The corporate debtor acknowledged the debt but disputed the rate of interest, claiming it was 12% p.a. and partially paid. The balance sheet of the corporate debtor for the financial year

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## Issues and analysis

### Issue 1: Whether a financial debt of a sum over rupees one crore is due and payable by the respondent to the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code (IBC) allows a financial creditor, either

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**Reasoning:** The Tribunal considered the evidence presented by the financial creditors, including loan

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**Interpretation:** The interpretation of Section 7 of the IBC allows for a joint application by

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**Application:** The Tribunal found that the financial creditors had established that the

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Pushpa…
- **Respondents:** Jairam Foundry…; M/s. Jairam…

## Timeline

- **2012-01-01 — Loan Disb…**: Financial creditor lent Rs.1,44,70,439/-…
- **2021-03-01 — Loan Dem…**: Financial creditor…

## Legal provisions

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

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