# 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-01259. The case involves a petition filed by Kavita Rajesh Chaturvedi (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 26 Aug 2022
- **Citation:** TCN-2022-NCLT-01259
- **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-a03ca9e3

## 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 a loan. 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 a residential flat. The Corporate Debtor later requested cancellation of the flat allotment. Despite some repayments and adjustments, a significant amount remained unpaid, leading to the

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## Facts

In July 2011, Neptune Ventures and Developers Private Limited (Corporate Debtor) approached Kavita Rajesh Chaturvedi (Financial Creditor) for a short-term loan of Rs. 1,00,00,000. The Financial Creditor granted the loan, and a Loan Agreement dated July 20, 2011, was executed. The Corporate Debtor issued a Demand Promissory Note and an Undertaking cum Indemnity for Post Dated Cheques, both dated July 20, 2011. The Corporate Debtor created a security over a residential flat. The Corporate Debtor requested cancellation of the flat allotment in October 2011, which the Financial Creditor accepted. The Corporate Debtor acknowledged the outstanding amount in a letter dated April 1, 2014, and requested an extension for repayment. The Corporate Debtor repaid Rs. 5,40,000

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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 court examined the loan agreement, letters, and ledger accounts. The court noted the

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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 court applied the ratio to the facts by considering the loan agreement, the

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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 dated 20th July…
- **2011-10-16 — Request for Can…**: Corporate Debtor addressed a Letter dated 16th October 2011 to the Financial Creditor…

## 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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