# In the matter of PSB Industries (India) Private Limited (IB)-351(ND)-2022

> NCLT judgment dated 2022-07-28. Citation: TCN-2022-NCLT-01543. Mr. Rahul Chaudhry, the Financial Creditor, filed a petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 28 Jul 2022
- **Citation:** TCN-2022-NCLT-01543
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/psb-industries-india-private-limited-ib-351nd-2022-76a655fb

## Summary

### Background

Mr. Rahul Chaudhry, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. PSB Industries (India) Private Limited, the Corporate Debtor. The Corporate Debtor was incorporated on 21.05.1981. A short-term loan agreement dated 24.09.2021 was executed between the Applicant and the Corporate Debtor, where the Applicant disbursed Rs. 1,00,00,000/- to the Corporate Debtor, payable at 15% per annum until 24.12.2021.

## Facts

Mr. Rahul Chaudhry, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. PSB Industries (India) Private Limited, the Corporate Debtor. The Corporate Debtor was incorporated on 21.05.1981. A short-term loan agreement dated 24.09.2021 was executed between the Applicant and the Corporate Debtor, where the Applicant disbursed Rs. 1,00,00,000/- to the Corporate Debtor, payable at 15% per annum or 1.25% per month until 24.12.2021. The Applicant claimed a total debt of ₹1,05,87,500/-, including the principal loan amount and interest, with the date of default being 24.12.2021. The Applicant sent reminders via email on 17.11.2021, 03.01.2022, 19.01.2022,

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## Issues and analysis

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

**Ratio:** Section 7(5) of the IBC allows the Adjudicating Authority to admit an application if it

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**Reasoning:** The Adjudicating Authority observed that the application was complete, the Applicant

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

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**Application:** The Applicant provided sufficient documentation, including bank statements,

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## Parties

- **Judges:** SHRI. DHARMINDER…; Shri. L. N.…
- **Appellants:** Rahul Cha…
- **Respondents:** M/s PSB Industries…; Swaralipi D…

## Timeline

- **1981-05-21 — Incorporation of…**: M/s. PSB Industries (India)…
- **2021-09-24 — Loan Agre…**: A short-term loan agreement was executed between the Applicant and the Corporate Debtor…

## 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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