# In the matter of Paytail Commerce Private Limited

> NCLT judgment dated 2024-08-12. Citation: TCN-2024-NCLT-00830. The petition was filed by Amit Jain, the Financial Creditor, under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 12 Aug 2024
- **Citation:** TCN-2024-NCLT-00830
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/paytail-commerce-private-limited-11d5ec70

## Summary

### Background

The petition was filed by Amit Jain, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Paytail Commerce Private Limited, the Corporate Debtor. The Financial Creditor claimed a default of Rs. 1,04,50,000/- including interest at 12% per annum. The Corporate Debtor is a private limited company incorporated on 07.09.2020. The Financial Creditor extended loans of Rs. 50 Lakhs to the Corporate Debtor as per loan agreements dated 30.06.2023 and 31.07.2023, totaling Rs. 1 Crore. The Financial Creditor exercised his right to call for interest payment, but the Corporate Debtor failed to make the payment even after an extension. The Financial Creditor issued a final

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## Facts

Amit Jain, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Paytail Commerce Private Limited, the Corporate Debtor. The Corporate Debtor was incorporated on 07.09.2020. The Financial Creditor extended loans totaling Rs. 1 Crore to the Corporate Debtor as per loan agreements dated 30.06.2023 and 31.07.2023. The Financial Creditor claimed a default of Rs. 1,04,50,000/-, including interest at 12% per annum. The Financial Creditor exercised his right to call for interest payment, but the Corporate Debtor failed to make the payment even after an extension was granted until 15.11.2023. The Financial Creditor issued a final notice on 25.11.2023, but the

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## Issues and analysis

### Issue 1: Whether the present petition filed …

**Ratio:** The limitation period for filing a petition under Section 7 of the IBC is 3 years from

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**Reasoning:** The Financial Creditor contended that the date of default was 09.12.2023, and the present

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**Interpretation:** The court interpreted the limitation period as starting from the date of

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**Application:** Since the petition was filed within 3 years of the claimed date of default, the

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## Parties

- **Judges:** Harnam Singh…; Ashish…
- **Appellants:** Amit…
- **Respondents:** Paytail Commerce…

## Timeline

- **2020-09-07 — Incorporation of…**: Paytail Commerce Private…
- **2021-03-24 — Financial Creditor…**: Financial Creditor acquired a 7.5% stake in the Corporate Debtor by making a payment of…

## 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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