# In the matter of NKR reality Private Limited

> NCLT judgment dated 2024-03-12. Citation: TCN-2024-NCLT-02096. This is a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed by…

- **Court:** NCLT
- **Order date:** 12 Mar 2024
- **Citation:** TCN-2024-NCLT-02096
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nkr-reality-private-limited-16e3d4c5

## Summary

### Background

This is a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed by Shri Arihant Merchants Private Limited & Ors, seeking to initiate Corporate Insolvency Resolution Process (“CIRP”) against NKR Realty Private Limited. The Corporate Debtor is a private limited company incorporated on 01.09.2015. The authorized share-capital of the company is ₹10,00,000/- and the paid-up share capital of the company is ₹1,00,000/-. The total amount claimed to be in due to the Financial Creditor, is Rs. 1,21,23,815/-. The date of default is mentioned as 10.12.2022. The Financial Creditor has relied on various documents in support of its claims.

## Facts

Shri Arihant Merchants Private Limited & Ors. (Financial Creditors) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against NKR Realty Private Limited (Corporate Debtor). The Corporate Debtor is a private limited company incorporated on 01.09.2015 with an authorized share capital of ₹10,00,000/- and a paid-up share capital of ₹1,00,000/-. The Financial Creditors claimed a total amount of Rs. 1,21,23,815/- due from the Corporate Debtor, with the date of default being 10.12.2022. The Financial Creditors advanced three loans to the Corporate Debtor based on verbal agreements, repayable on demand, with interest calculated at an agreed rate. The Corporate Debtor made payments only

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in payment …

**Ratio:** The Adjudicating Authority needs to primarily ascertain that a 'debt' and 'default' exist

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**Reasoning:** The Adjudicating Authority considered the bank statements of the Financial Creditors,

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**Interpretation:** The existence of a debt and default are prerequisites for admitting a petition

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**Application:** The Adjudicating Authority found that the Corporate Debtor had failed to file

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Appellants:** Arihant Merchants…
- **Respondents:** NKR reality…

## Timeline

- **2015-09-01 — Incorporation of…**: NKR Realty Private Limited was…
- **2022-11-30 — Loan Recall…**: Financial Creditors sent recall…

## 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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