# In the matter of Point Developers Private Limited

> NCLT judgment dated 2024-07-26. Citation: TCN-2024-NCLT-00940. The case involves a petition filed by Rushabh Civil Contractors Private Limited, the Financial…

- **Court:** NCLT
- **Order date:** 26 Jul 2024
- **Citation:** TCN-2024-NCLT-00940
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/point-developers-private-limited-fed72254

## Summary

### Background

The case involves a petition filed by Rushabh Civil Contractors Private Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Point Developers Private Limited, the Corporate Debtor. The Financial Creditor claims that the Corporate Debtor defaulted on loans and advances amounting to Rs. 9,56,83,836/-. The Corporate Debtor disputes the debt and the maintainability of the petition, raising objections related to the absence of a written contract, limitation, and the authority of the Interim Resolution Professional (IRP) to initiate proceedings.

## Facts

Rushabh Civil Contractors Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Point Developers Private Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor had availed loans and advances amounting to Rs. 9,56,83,836/-, including interest. The initial loan amount was Rs. 3,50,00,000/-. The Corporate Debtor had approached the Financial Creditor in 2016 seeking financial assistance. The date of default was stated to be 07.12.2022. The Corporate Debtor disputed the debt, arguing that the Financial Creditor failed to substantiate its claim as a 'Financial Creditor,' that no financial debt existed, and that the

…

## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor is maintainable under Section 7 of the …

**Ratio:** A petition under Section 7 of the IBC is maintainable if a financial debt exists and the

…

**Reasoning:** The court found that the Financial Creditor had established the existence of a financial

…

**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

…

**Application:** The court applied the ratio to the facts of the case, finding that the

…

## Parties

- **Judges:** SH. Justice…; Prabhat…
- **Appellants:** Rushabh Civil…
- **Respondents:** M/s. Point…

## Timeline

- **2016-01-01 — Financial Assistance…**: The Corporate Debtor approached the Financial…
- **2016-12-16 — Transfer of…**: The Financial Creditor transferred Rs. 3,50,00,000/- to the Corporate Debtor as an…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/point-developers-private-limited-fed72254