# In the matter of Shradha Agencies Private Limited CP (IB) No. 991-KB-2019

> NCLT judgment dated 2023-04-13. Citation: TCN-2023-NCLT-03811. Rungta Business Private Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 13 Apr 2023
- **Citation:** TCN-2023-NCLT-03811
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shradha-agencies-private-limited-cp-ib-no-991-kb-2019-1a75d879

## Summary

### Background

Rungta Business Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shradha Agencies Private Limited, the Corporate Debtor. The petition was initially dismissed, then appealed to NCLAT, which remanded the matter back to the Adjudicating Authority. The Corporate Debtor further appealed to the Supreme Court, which dismissed the appeal, leaving all contentions open to be urged before the NCLT.

## Facts

Rungta Business Private Limited (Financial Creditor) filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shradha Agencies Private Limited (Corporate Debtor). The Financial Creditor claimed that it had extended an Inter Corporate Deposit (ICD) of Rs. 25,00,000/- to the Corporate Debtor on 16.08.2017, evidenced by a money receipt signed by the Corporate Debtor's Director, Late Rajeev Arora. The Financial Creditor also claimed that an interest of 12% per annum was charged on the ICD. The Corporate Debtor defaulted on the payment of the debt, and the Financial Creditor issued a demand notice on 10.06.2019. The Corporate Debtor denied the claim, alleging that the money

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is complete in …

**Ratio:** The application must contain all the necessary information and documents as required by

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**Reasoning:** The Adjudicating Authority found that the Financial Creditor had provided sufficient

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**Interpretation:** Section 7 of the IBC requires the financial creditor to provide evidence of

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**Application:** The Adjudicating Authority determined that the Financial Creditor's application

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Respondents:** Shradha Agencies…

## Timeline

- **1978-05-25 — Corporate Debtor…**: Shradha Agencies Private…
- **2017-08-16 — Inter Corporat…**: Rungta Business Private Limited transferred Rs. 25,00,000/- to Shradha Agencies Private…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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