# In the matter of Shivam Water Treaters Private Limited IA No. 889 of 2022 in CP (IB) 158-NCLT-AHM-2020

> NCLT judgment dated 2022-12-06. Citation: TCN-2022-NCLT-00229. The case involves an application filed by Premjayanti Enterprises Private Limited under Section…

- **Court:** NCLT
- **Order date:** 6 Dec 2022
- **Citation:** TCN-2022-NCLT-00229
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shivam-water-treaters-private-limited-ia-no-889-of-2022-in-cp-ib-158-nclt-ahm-20-70597032

## Summary

### Background

The case involves an application filed by Premjayanti Enterprises Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Shivam Water Treaters Private Limited. The applicant claimed that the corporate debtor defaulted on loan repayments. The corporate debtor contested the application, arguing that the debt was related to a joint venture agreement and that the principal amount had been paid, leaving only interest outstanding. The applicant argued that the loan was independent of the joint venture and that interest was also due.

## Facts

Premjayanti Enterprises Private Limited (the applicant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Shivam Water Treaters Private Limited (the corporate debtor). The application was based on a claim of default on loans and advances made by the applicant to the corporate debtor. The applicant stated that in August 2016, it had provided loans and advances aggregating to Rs. 2,66,81,094.00 at 16% p.a. repayable on demand. The total default amount claimed was Rs. 1,00,46,246.17, including principal and interest. The corporate debtor had issued a cheque dated 10.09.2018 for repayment, which was dishonored, leading to proceedings under Section 138 of the NI Act. The corporate debtor argued that the debt was

…

## Issues and analysis

### Issue 1: Whether the CIRP can be initiated on the basis of only unpaid amount of interest when the entire …

**Ratio:** CIRP cannot be initiated solely on the basis of the unpaid amount of interest when the

…

**Reasoning:** The court relied on the judgment of Hon'ble NCLAT in S. S. Polymers v. Kanodia

…

**Interpretation:** The definitions of 'financial debt,' 'debt,' and 'claim' under the IBC do not

…

**Application:** In this case, the principal amount of the debt was already paid by the

…

## Parties

- **Judges:** DEEPTI M…; Ajai Das Me…
- **Appellants:** Premjayanti…
- **Respondents:** Shivam Water…

## Timeline

- **2020-02-13 — Application…**: Application filed under Section 7 of the…
- **2016-08-01 — Loan Pro…**: Applicant provided loans and…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shivam-water-treaters-private-limited-ia-no-889-of-2022-in-cp-ib-158-nclt-ahm-20-70597032