# In the matter of MP Promoters Pvt. Ltd. (IB)-2607(PB)-2019

> NCLT judgment dated 2022-04-06. Citation: TCN-2022-NCLT-03341. Ambrane India Pvt. Ltd., a financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 6 Apr 2022
- **Citation:** TCN-2022-NCLT-03341
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mp-promoters-pvt-ltd-ib-2607pb-2019-f16a176c

## Summary

### Background

Ambrane India Pvt. Ltd., a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against MP Promoters Pvt. Ltd., the corporate debtor. The financial creditor claimed that it had granted loans to the corporate debtor, which remained unpaid. The corporate debtor disputed the claim, arguing that there was no agreement specifying the interest payable on the loan.

## Facts

Ambrane India Pvt. Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against MP Promoters Pvt. Ltd. (Corporate Debtor). The Financial Creditor (FC) claimed to have granted a loan of Rs. 1,01,00,000/- to the Corporate Debtor (CD) at 9% per annum, compounded on 31.03.2018. An amount of Rs. 51,00,000/- was disbursed on 26.05.2017, and an additional Rs. 50,00,000/- was disbursed on 03.06.2017. The FC submitted that the CD was liable to pay Rs. 1,21,95,953/- including interest until 31.07.2019, plus further interest at 9% per annum from 01.08.2019. The CD's balance sheet ending 31.03.2018 showed Rs. 1,01,00,000/- as a liability payable to the FC. The CD

…

## Issues and analysis

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

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

…

**Reasoning:** The NCLT considered the evidence presented by the financial creditor, including bank

…

**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

…

**Application:** The court applied Section 7 to the facts of the case and concluded that the

…

## Parties

- **Judges:** Ramalingam…; Sh. Avinash K.…
- **Appellants:** Ambrane India Pvt…
- **Respondents:** MP Promoters Pvt.…

## Timeline

- **2017-05-26 — Loan Disbur…**: Rs. 51,00,000/- disbursed…
- **2017-06-03 — Additional Loan…**: Additional amount disbursed…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mp-promoters-pvt-ltd-ib-2607pb-2019-f16a176c