# In the matter of L G Fibre Private Limited

> NCLT judgment dated 2023-12-21. Citation: TCN-2023-NCLT-00099. The case pertains to an application filed by Raj Radhe Finance Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 21 Dec 2023
- **Citation:** TCN-2023-NCLT-00099
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/l-g-fibre-private-limited-88754236

## Summary

### Background

The case pertains to an application filed by Raj Radhe Finance Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against L G Fibre Private Limited, the Corporate Debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a default amount of Rs.9,94,92,860.57/- with the date of default mentioned as 31.05.2018. The Financial Creditor is incorporated on 17.01.1985, while the Corporate Debtor was incorporated on 21.02.2013 with an authorized share capital of Rs.4,00,00,000/-.

## Facts

Raj Radhe Finance Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against L G Fibre Private Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor defaulted on a debt amounting to Rs.9,94,92,860.57/-, with the date of default being 31.05.2018. The Financial Creditor was incorporated on 17.01.1985, and the Corporate Debtor was incorporated on 21.02.2013. The Corporate Debtor had availed credit facilities from Bank of India and defaulted on repayment. The loan was assigned to the applicant via an agreement dated 21.10.2021. The Corporate Debtor did not deny the existence of the debt or the default. The

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

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**Reasoning:** The Tribunal considered the application filed by the Financial Creditor and examined the

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The Financial Creditor, Raj Radhe Finance Limited, filed the application under

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Raj Radhe Finance…
- **Respondents:** L.G. Fibre…

## Timeline

- **1985-01-17 — Incorporation of…**: Raj Radhe Finance…
- **2013-02-21 — Incorporation of…**: L G Fibre Private…

## 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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