# In the matter of MKMG Jewel Developers Private Limited CP(IB) 2503-ND-2019

> NCLT judgment dated 2022-01-12. Citation: TCN-2022-NCLT-04456. The case involves an application filed by Ambrane India Private Limited, the…

- **Court:** NCLT
- **Order date:** 12 Jan 2022
- **Citation:** TCN-2022-NCLT-04456
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mkmg-jewel-developers-private-limited-cpib-2503-nd-2019-6ebb539b

## Summary

### Background

The case involves an application filed by Ambrane India Private Limited, the Applicant/Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the corporate insolvency resolution process (CIRP) against MKMG Jewel Developers Private Limited, the Respondent/Corporate Debtor, due to a default amount of Rs. 1,42,49,431/- inclusive of applicable interest. The applicant disbursed an unsecured loan of Rs. 1,25,00,000/- to the corporate debtor in January 2018, which was to be repaid by December 31, 2018. The corporate debtor failed to repay the loan, leading to the application for CIRP.

## Facts

Ambrane India Private Limited (Applicant/Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against MKMG Jewel Developers Private Limited (Respondent/Corporate Debtor). The default amount was Rs. 1,42,49,431/-, inclusive of interest, with the default date being 01.01.2019. The applicant is a private limited company incorporated on 23.10.2012 and is engaged in the business of buying and selling computer peripherals, hardware, software, and mobile accessories. The corporate debtor is also a private limited company incorporated on 22.03.2012 and is engaged in the business of gold, silver, platinum, pearls, bullions, diamond, and jewelry. In January 2018, the corporate debtor approached the applicant for

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, should …

**Ratio:** Section 7(5) of the IB Code states that the Adjudicating Authority shall admit the

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**Reasoning:** The court found that the application was complete and that the corporate debtor had

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**Interpretation:** Section 7 of the IB Code provides the procedure for initiating CIRP by a

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**Application:** The court applied the provisions of Section 7 of the IB Code to the facts of

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## Parties

- **Judges:** DEEPTI M…; SUMITA PURK…; +1 more
- **Appellants:** Ambrane India…
- **Respondents:** MKMG Jewel…

## Timeline

- **2018-01-01 — Corporate Debtor…**: Mr. Mukesh Kumar, on behalf of the Corporate Debtor, approached the Applicant for…
- **2018-01-10 — Board Reso…**: Applicant company…

## 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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