# In the matter of Neptune Ventures and Developers
Private Limited CP (IB) No. 3960-MB-2019

> NCLT judgment dated 2022-08-26. Citation: TCN-2022-NCLT-01238. The case involves a petition filed by Kavita Rajesh Chaturvedi (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 26 Aug 2022
- **Citation:** TCN-2022-NCLT-01238
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/neptune-ventures-and-developers-private-limited-cp-ib-no-3960-mb-2019-69680f77

## Summary

### Background

The case involves a petition filed by Kavita Rajesh Chaturvedi (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Neptune Ventures and Developers Private Limited (Corporate Debtor). The Financial Creditor alleges that the Corporate Debtor defaulted in making payment of an aggregate amount of Rs. 17,84,219/- along with interest. The Corporate Debtor had approached the Financial Creditor for a short-term loan of Rs. 1,00,00,000/- in 2011, which was granted. A loan agreement was signed, and the Corporate Debtor created a security over an immovable property. The Corporate Debtor later requested cancellation of the allotment of the flat. Despite some repayments, a

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## Facts

Kavita Rajesh Chaturvedi (Financial Creditor) filed a petition against Neptune Ventures and Developers Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had taken a short-term loan of Rs. 1,00,00,000/- from the Financial Creditor in July 2011, with an interest rate of 24% per annum. A loan agreement was signed, and the Corporate Debtor created a security over an immovable property. The Corporate Debtor later requested cancellation of the allotment of the flat. The Corporate Debtor acknowledged the outstanding amount in a letter dated 1st April 2014 and requested an extension for repayment. The Corporate Debtor also forwarded post-dated cheques, one of which was honored. The Corporate Debtor repaid Rs.

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has successfully demonstrated the existence of debt and default by …

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

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**Reasoning:** The NCLT examined the loan agreement, letters exchanged between the parties, and ledger

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**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial creditor can

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**Application:** The NCLT applied the principle of Section 7 to the facts of the case, noting

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Kavita Rajesh…
- **Respondents:** Neptune Ventures…

## Timeline

- **2011-07-20 — Loan Agre…**: Loan Agreement signed between Financial Creditor and Corporate Debtor for Rs.…
- **2011-07-20 — Demand Promiss…**: Demand Promissory Note dated 20th…

## 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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