# In the matter of Shah Housecon Private Limited C.P. No. 59-IBC-MB-2022

> NCLT judgment dated 2022-07-19. Citation: TCN-2022-NCLT-01660. The case pertains to a Company Petition filed by M/s. Nidhaan Enterprises, the Financial…

- **Court:** NCLT
- **Order date:** 19 Jul 2022
- **Citation:** TCN-2022-NCLT-01660
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shah-housecon-private-limited-cp-no-59-ibc-mb-2022-1b9094df

## Summary

### Background

The case pertains to a Company Petition filed by M/s. Nidhaan Enterprises, the Financial Creditor/Petitioner, under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudication Authority) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Shah Housecon Private Limited, the Corporate Debtor, for an unresolved Financial Debt of Rs. 2,61,37,500/-. The Financial Creditor had previously filed a Company Petition (C.P. No 1385 of 2020) which was disposed of on 27.01.2021 based on consent terms entered between the parties.

## Facts

M/s. Nidhaan Enterprises, the Financial Creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s. Shah Housecon Private Limited, the Corporate Debtor. The claim was for an unresolved Financial Debt of Rs. 2,61,37,500/-. The Financial Creditor had previously filed a Company Petition (C.P. No 1385 of 2020) which was disposed of on 27.01.2021 based on consent terms. The Financial Creditor submitted documents, records, and evidence of default related to sanctioning term loan facilities to the Corporate Debtor, including consent terms dated 25.01.2021, bank statements, and bounced cheques. The Corporate Debtor had paid the first installment of Rs. 1,50,00,000/-, but the second and third installments (Rs.

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court considered the submissions of the Financial Creditor, the documents provided as

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

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**Application:** The court applied Section 7 and Rule 4 to the facts presented, finding that the

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## Parties

- **Judges:** H.V. Subb…; ANURADHA SANJAY…
- **Appellants:** M/s. Nidhaan…
- **Respondents:** M/s. Shah…

## Timeline

- **2020-01-01 — Earlier Company…**: The Financial Creditor filed an earlier…
- **2021-01-27 — Disposal of Earlier…**: The earlier Company Petition (C.P. No 1385 of 2020) was disposed of in view of the…

## Legal provisions

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

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