# In the matter of Piyush Infrastructure India Private Limited CP (IB) No.453-ALD-2019

> NCLT judgment dated 2022-06-13. Citation: TCN-2022-NCLT-02258. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 13 Jun 2022
- **Citation:** TCN-2022-NCLT-02258
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/piyush-infrastructure-india-private-limited-cp-ib-no453-ald-2019-2f784016

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by N.C. Goel and Maya Goel (Financial Creditors) against Piyush Infrastructure India Private Limited (Corporate Debtor). The Financial Creditors claimed to have provided a loan of ₹12,00,000/- to the Corporate Debtor, with an interest rate of 18% per annum. The Corporate Debtor allegedly made some interest payments but later defaulted. The Financial Creditors filed the application seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

## Facts

N.C. Goel and Maya Goel, residing in Delhi, claimed to be financial creditors of Piyush Infrastructure India Private Limited, located in Uttar Pradesh. Maya Goel provided loans totaling ₹8,00,000 between 2011 and 2013, while N.C. Goel provided loans totaling ₹4,00,000 between 2012 and 2015. The financial creditors claimed an 18% annual interest rate. The corporate debtor allegedly paid interest to Maya Goel until 2016 and to N.C. Goel until 2016. The corporate debtor issued post-dated cheques for repayment of the principal amount, starting from 2018. The financial creditors initiated a complaint under Section 138 of the Negotiable Instruments Act, 1881, after the cheques were dishonored. The corporate debtor argued that no interest was ever paid, there was no written

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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 Insolvency & Bankruptcy Code, 2016, should not be allowed to be used as an easy

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**Reasoning:** The NCLT found that there was a lack of adequate documentation to establish the purpose

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**Interpretation:** The NCLT interpreted that the IBC is intended for resolution of corporate

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**Application:** The NCLT applied this principle to the facts of the case, finding that the

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Appellants:** N.C.…
- **Respondents:** Piyush Infrastruct…

## Timeline

- **2011-01-01 — Loan Disbur…**: Maya Goel and N.C. Goel disbursed loans to Piyush Infrastructure India Private Limited…
- **2016-04-09 — Last Interest Payment…**: Corporate Debtor paid interest to Ms.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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