# In the matter of Stalwart International Trading Private Limited

> NCLT judgment dated 2023-12-12. Citation: TCN-2023-NCLT-00303. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 12 Dec 2023
- **Citation:** TCN-2023-NCLT-00303
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stalwart-international-trading-private-limited-0083e0b1

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Sulaiman Abdul Gaffor (Financial Creditor) against Stalwart International Trading Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claims a principal amount of Rs. 1,00,00,000/- along with an interest of Rs. 50,00,000/-. The Corporate Debtor allegedly defaulted on 20.08.2021. The Financial Creditor also filed an interlocutory application seeking an injunction against the Corporate Debtor from creating any encumbrance or alienating immovable property.

## Facts

Sulaiman Abdul Gaffor, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Stalwart International Trading Private Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor owed a principal amount of Rs. 1,00,00,000/- along with an interest of Rs. 50,00,000/-, totaling Rs. 1,50,00,000/-, with the date of default being 20.08.2021. The Financial Creditor submitted documents including a Memorandum of Understanding dated 23.11.2012, cheque copies, bank statements, emails, and a Letter of Undertaking dated 26.11.2014. The Financial Creditor had advanced KD 51,500 (Kuwaiti Dinars) equivalent to Rs.1,00,00,000/- to Solution Managers International as per the instructions of the Corporate

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## Issues and analysis

### Issue 1: Whether the application 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 Adjudicating Authority considered the documents submitted by the Financial Creditor

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

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**Application:** In this case, the Financial Creditor demonstrated the existence of a financial

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## Parties

- **Judges:** SANJIV…; RAVICHANDRAN…
- **Appellants:** Sulaiman Abdul…
- **Respondents:** Stalwart Internati…
- **Advocates:** P.V. Balasubramani…; Siddart…

## Timeline

- **2012-05-11 — Incorporation of…**: Stalwart International Trading Private Limited…
- **2012-11-23 — Memorandum of…**: Memorandum of Understanding between…

## 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)

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