# In the matter of Shivam Parivar Developers Private Limited CP (IB) 702-MB-2019

> NCLT judgment dated 2023-06-23. Citation: TCN-2023-NCLT-02825. The case involves a petition filed by AMI Corporation, through its sole proprietor Mr. Nipun…

- **Court:** NCLT
- **Order date:** 23 Jun 2023
- **Citation:** TCN-2023-NCLT-02825
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shivam-parivar-developers-private-limited-cp-ib-702-mb-2019-5c321a38

## Summary

### Background

The case involves a petition filed by AMI Corporation, through its sole proprietor Mr. Nipun Thakkar, against Shivam Parivar Developers Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. AMI Corporation, the Financial Creditor, claimed a default of Rs. 7,44,80,000/- along with interest. The Corporate Debtor, Shivam Parivar Developers Private Limited, is a private company incorporated in 2005. The Financial Creditor claimed that the Corporate Debtor defaulted on a Letter of Understanding dated 31.12.2017. Subsequent agreements and resolutions were made to repay the debt, but defaults continued. The Financial Creditor submitted that the debt was within the limitation period due to acknowledgements and fresh promises to pay by the Corporate

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## Facts

AMI Corporation, through its sole proprietor Mr. Nipun Thakkar, filed a petition against Shivam Parivar Developers Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 7,44,80,000/- along with interest. The Corporate Debtor is a private company incorporated on 01/04/2005. The Financial Creditor and Corporate Debtor initially agreed to a joint development, but the conditions precedent were not fulfilled. The Corporate Debtor defaulted on a Letter of Understanding dated 31.12.2017 for Rs.6,65,00,000/- plus interest. A supplemental agreement dated 16.07.2018 agreed to pay Rs.7,44,80,000/- plus interest by 31.12.2018. A Board Resolution dated 13.07.2018 ratified the Letter of Understanding. The Financial Creditor sent a

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** The principle is that a financial debt exists when there is a debt along with interest,

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**Reasoning:** The NCLT considered the Letter of Understanding, supplemental agreements, board

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**Interpretation:** The interpretation of 'financial debt' and 'default' under the IBC is crucial.

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**Application:** The NCLT applied the principle to the facts, finding that the Corporate Debtor

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## Parties

- **Judges:** H.V. Subb…; Shyam Babu…
- **Appellants:** Ami Corpo…
- **Respondents:** ShivamParivar…; SHIVAM PARIVAR…

## Timeline

- **2019-02-13 — Petition…**: The present Petition was filed before this Adjudicating Authority claiming a sum of…
- **2017-12-31 — Letter of Understanding…**: The Corporate Debtor defaulted in paying the Financial Debt of Rs.6,65,00,000/- along…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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