# In the matter of Sagar and Vivaan Construction Pvt. Ltd.

> NCLT judgment dated 2024-02-29. Citation: TCN-2024-NCLT-02310. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 29 Feb 2024
- **Citation:** TCN-2024-NCLT-02310
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sagar-and-vivaan-construction-pvt-ltd-3719e09d

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by three financial creditors, Wealth Avenue Real Estate Pvt Ltd, Ayaan Buildcon Pvt Ltd, and Ansh Industries Pvt Ltd, against the corporate debtor, M/s Sagar and Vivaan Construction Pvt Ltd, for initiating Corporate Insolvency Resolution Process (CIRP). The financial creditors claim a total default of Rs. 3,65,70,000/-. The corporate debtor failed to appear in the proceedings despite multiple notices.

## Facts

Wealth Avenue Real Estate Pvt Ltd, Ayaan Buildcon Pvt Ltd, and Ansh Industries Pvt Ltd jointly filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Sagar and Vivaan Construction Pvt Ltd, seeking to initiate Corporate Insolvency Resolution Process (CIRP). Each financial creditor provided a loan of Rs. 1,00,00,000/- to the corporate debtor. The corporate debtor agreed to pay interest at 3% per month. The corporate debtor made regular monthly interest payments from February 2022 to June 2022 but failed to deposit the TDS. From June 2022 to December 2022, the corporate debtor failed to pay monthly installments and TDS. The total outstanding amount, including principal and interest, is Rs. 3,65,70,000/-. The corporate debtor did not

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## Issues and analysis

### Issue 1: Whether the joint application filed by the three financial creditors is maintainable under Section …

**Ratio:** Section 7(1) of the I&B Code permits a financial creditor, either by itself or

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**Reasoning:** The court relied on precedents such as Vishnu Oil Mill Pvt. Ltd. v. Union of India and

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**Interpretation:** The interpretation of Section 7(1) allows for a joint application by financial

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**Application:** In this case, the three financial creditors jointly filed the application, and

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## Parties

- **Judges:** BIDISHA BA…; SHRI. D.A…
- **Appellants:** Wealth Avenue…
- **Respondents:** M/s. Sagar and…

## Timeline

- **2021-12-01 — Loan Appli…**: Corporate Debtor approached Financial Creditor no. 1 for a loan facility of Rs…
- **2022-01-28 — Loan Appli…**: Corporate Debtor approached Financial Creditor no. 2 for a loan facility of Rs…

## 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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