# In the matter of Manglam Paper Private Limited

> NCLT judgment dated 2024-01-30. Citation: TCN-2024-NCLT-02860. The case involves an application filed by Keta Parth Patel, a shareholder of Manglam Paper…

- **Court:** NCLT
- **Order date:** 30 Jan 2024
- **Citation:** TCN-2024-NCLT-02860
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/manglam-paper-private-limited-fb504db7

## Summary

### Background

The case involves an application filed by Keta Parth Patel, a shareholder of Manglam Paper Private Limited, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate a Corporate Insolvency Resolution Process (CIRP) against the company. Patel claims to be a financial creditor due to financial assistance provided to Manglam Paper Private Limited. The application was filed due to the corporate debtor's failure to repay the amount.

## Facts

Keta Parth Patel, a shareholder of Manglam Paper Private Limited, filed an application under Section 7 of the IBC to initiate CIRP against the company, claiming to be a financial creditor. The amount of debt claimed was Rs. 1,12,10,860.00 as of 24.03.2023, with the date of default being 01.12.2021. Patel had provided financial assistance to the company, which was supposed to be repaid by 02.08.2021. The company issued a letter on 18.09.2021 requesting a meeting for an amicable solution, and a Memorandum of Understanding (MOU) was entered into on 01.10.2021, with the company agreeing to repay the amount within 60 days. However, the company failed to repay. The company acknowledged receiving financial assistance but stated that payments were made until 03.08.2021, after

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## Issues and analysis

### Issue 1: Whether the application is maintainable under Section …

**Ratio:** An application under Section 7 of the IBC is maintainable only if the applicant qualifies

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**Reasoning:** The court observed that the applicant is a shareholder and an individual who lent money

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**Interpretation:** Section 7 of the IBC allows financial creditors to initiate CIRP against a

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**Application:** In this case, the applicant, being a shareholder who lent money without

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Keta Parth…
- **Respondents:** Manglam Paper…; Manglam Paper Pvt…
- **Advocates:** Pratik Th…; Vinodkumar…

## Timeline

- **2021-08-02 — Repayment…**: The corporate debtor was supposed to repay…
- **2021-09-01 — Letter from A…**: The applicant called upon the Corporate Debtor to repay the amount toward financial…

## 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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