# In the matter of JASMINE COMMODITIES PRIVATE LIMITED

> NCLT judgment dated 2025-04-08. Citation: TCN-2025-NCLT-00225. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 Apr 2025
- **Citation:** TCN-2025-NCLT-00225
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jasmine-commodities-private-limited-289f68ad

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Horizon Commtrade Limited (Financial Creditor/Petitioner) against Jasmine Commodities Private Limited (Corporate Debtor/Respondent). The Financial Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, alleging default on repayment of a loan provided under an intercompany loan agreement.

## Facts

Horizon Commtrade Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jasmine Commodities Private Limited (Corporate Debtor). The Financial Creditor claimed to have provided a loan to the Corporate Debtor under an intercompany loan agreement dated 10.09.2019. The Financial Creditor disbursed payments to the borrower as per the loan agreement. The Corporate Debtor defaulted on the repayment of the loan, which was to be repaid after 55 months from 10.09.2019, with principal and interest due by 17.04.2024. The Financial Creditor issued a loan recall notice on April 20, 2024, due to the default. The Corporate Debtor argued that the Financial

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** The scheme of the Code is to ensure that when a default takes place, in the sense that a

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**Reasoning:** The court found that the Corporate Debtor had defaulted on its debt repayment obligations

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**Interpretation:** The legal issue revolves around the interpretation of Section 7 of the

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**Application:** In this case, the court applied the ratio to the facts by finding that the

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## Parties

- **Judges:** BIDISHA BA…; Cmde Siddharth…
- **Appellants:** Horizon Commtrade…
- **Respondents:** Jasmine Commoditie…

## Timeline

- **2019-09-10 — Intercompany Loan…**: Intercompany loan agreement was executed between Horizon Commtrade Limited and Jasmine…
- **2019-09-16 — First Pa…**: First payment of Rs. 50,00,000 was made by the…

## 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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