# In the matter of Manikaran Vincom Private Limited

> NCLT judgment dated 2023-10-20. Citation: TCN-2023-NCLT-01065. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 Oct 2023
- **Citation:** TCN-2023-NCLT-01065
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/manikaran-vincom-private-limited-646bd21f

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by M/s Manavta Tradelink Private Limited (Financial Creditor) against M/s Manikaran Vincom Private Limited (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had an authorized share capital of Rs. 45,00,000/- and a paid-up capital of Rs. 44,54,000/-, incorporated on 28.01.2008. The Financial Creditor claimed a default of Rs. 2,72,04,493/- as on 25.12.2022, including interest at 12% per annum from 31.03.2021.

## Facts

M/s Manavta Tradelink Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Manikaran Vincom Private Limited, seeking to initiate CIRP. The Corporate Debtor had an authorized share capital of Rs. 45,00,000/- and a paid-up capital of Rs. 44,54,000/-, incorporated on 28.01.2008. The Financial Creditor claimed a default of Rs. 2,72,04,493/- as on 25.12.2022, including interest at 12% per annum from 31.03.2021. The loan was originally sanctioned by SSA Hire Purchase Private Limited as an unsecured loan of Rs. 1,40,00,000/- on 01.04.2016. The debt was assigned to M/s Manavta Tradelink Private Limited. The Corporate Debtor acknowledged the debt and sought an extension of time for repayment in a letter dated 15.07.2022.

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The court found that there was a default of financial debt exceeding the threshold limit,

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

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**Application:** The court applied Section 7 to the facts of the case, finding that the

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## Parties

- **Judges:** BIDISHA BA…; ARVIND DEVA…
- **Appellants:** M/s. Manavta…
- **Respondents:** M/s. Manikaran…

## Timeline

- **2008-01-28 — Incorporation of…**: M/s Manikaran Vincom Private Limited was incorporated with an authorized share capital of…
- **2016-04-01 — Loan Sanc…**: SSA Hire Purchase Private Limited sanctioned an unsecured loan of Rs. 1,40,00,000/- to…

## 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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