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

> NCLT judgment dated 2023-06-23. Citation: TCN-2023-NCLT-02821. 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-02821
- **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-e6cd7f7b

## 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 submitted that the Corporate Debtor defaulted in paying the financial debt as per a Letter of Understanding dated 31.12.2017 and a subsequent supplemental agreement. The Corporate Debtor acknowledged the debt and sought extensions for repayment. The Financial Creditor argued that the debt was within the limitation period due to

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## Facts

AMI Corporation, through Mr. Nipun Thakkar, filed a petition against Shivam Parivar Developers Private Limited under Section 7 of the IBC, claiming a default of Rs. 7,44,80,000/- plus interest. The Corporate Debtor is a private company incorporated in 2005. The Financial Creditor advanced Rs. 3,74,38,800/- to the Corporate Debtor in 2009-2010 for a joint development project that did not materialize. A Letter of Understanding dated 31.12.2017 indicated a default of Rs. 6,65,00,000/- plus interest. A supplemental letter dated 16.07.2018 agreed to pay Rs. 7,44,80,000/- plus interest by 31.12.2018. The Corporate Debtor's Board of Directors passed a resolution on 13.07.2018 confirming the debt. The Financial Creditor sent a letter on 04.07.2018 demanding repayment. The

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## Issues and analysis

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

**Ratio:** The ratio is based on the principle that a financial debt exists when there is a debt

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**Reasoning:** The court reasoned that the Corporate Debtor had acknowledged the debt through various

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**Interpretation:** The interpretation is that a financial debt and default are established based

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**Application:** The court applied this ratio to the facts by noting the existence of the Letter

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## Parties

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

## Timeline

- **2005-04-01 — Incorporation of…**: Shivam Parivar Developers Private Limited…
- **2009-01-01 — Financial Creditor…**: Between 2009-2010, AMI Corporation advanced Rs. 3,74,38,800/- to Shivam Parivar…

## 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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