# In the matter of Pancard Clubs Limited CP (IB) 4578-MB-C-I-2018

> NCLT judgment dated 2022-09-09. Citation: TCN-2022-NCLT-01108. The case pertains to a company petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 9 Sept 2022
- **Citation:** TCN-2022-NCLT-01108
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pancard-clubs-limited-cp-ib-4578-mb-c-i-2018-66c1f54d

## Summary

### Background

The case pertains to a company petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Mr. Nitin Suresh Satghare & 99 Ors. against Pancard Clubs Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The petitioners, acting as financial creditors, claim that the respondent, Pancard Clubs Limited, has defaulted in repayment of monies to the tune of Rs. 1,55,12,880/- invested by them. The Corporate Debtor is a Private Limited company incorporated on 24.01.1997 under Companies Act, 1956 with the Registrar of Companies, Maharashtra, Mumbai. The Securities Exchange Board of India (SEBI) had previously directed the Respondent to refund monies to investors of its Collective Investment Scheme (CIS), which was challenged by

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## Facts

1. Mr. Nitin Suresh Satghare & 99 Ors. filed a company petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Pancard Clubs Limited.
2. The petitioners are financial creditors seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the respondent.
3. The respondent, Pancard Clubs Limited, is a Private Limited company incorporated on 24.01.1997 under the Companies Act, 1956.
4. The petitioners claim that the respondent has defaulted in repayment of monies to the tune of Rs. 1,55,12,880/- invested by them.
5. The Securities Exchange Board of India (SEBI) had directed the respondent to refund monies to investors of its Collective Investment Scheme (CIS).
6. The respondent challenged SEBI's order before the Securities Appellate

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## Issues and analysis

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

**Ratio:** The Hon'ble Apex Court in E.S. Krishnamurthy vs Bharath Hi-Tecch Builders (P) Limited

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**Reasoning:** The Adjudicating Authority relied on the Apex Court's judgment to emphasize that its role

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to initiate

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**Application:** In this case, the Adjudicating Authority found that the Corporate Debtor is in

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Nitin Suresh…
- **Respondents:** Pancard Clubs…

## Timeline

- **1997-01-24 — Incorporation of…**: Pancard Clubs Limited incorporated as a Private…
- **2016-02-29 — SEBI Ord…**: Securities Exchange Board of India (SEBI) directed the Respondent to refund monies to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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