# In the matter of Stalwart International Trading Private Limited

> NCLT judgment dated 2023-12-12. Citation: TCN-2023-NCLT-00305. The case involves an application filed by Sulaiman Abdul Gaffor, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 12 Dec 2023
- **Citation:** TCN-2023-NCLT-00305
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stalwart-international-trading-private-limited-4d5a7c03

## Summary

### Background

The case involves an application filed by Sulaiman Abdul Gaffor, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, and Section 60(5) of the Insolvency and Bankruptcy Code, 2016, against Stalwart International Trading Private Limited, the Corporate Debtor. The Financial Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, declare a moratorium, and appoint an Interim Resolution Professional (IRP). The Corporate Debtor was set ex-parte after sufficient opportunity for appearance and representation was given.

## Facts

Sulaiman Abdul Gaffor, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Stalwart International Trading Private Limited, the Corporate Debtor. The Financial Creditor claimed a principal amount of Rs.1,00,00,000/- along with an interest of Rs.50,00,000/-, with the date of default being 20.08.2021. The Financial Creditor had advanced KD 51,500 (equivalent to Rs.1,00,00,000/-) to Solution Managers International as per the instructions of the Corporate Debtor, evidenced by a cheque dated 20.11.2012 and a Memorandum of Understanding dated 23.11.2012. The Corporate Debtor had sought the amount to meet its finances in respect of a business called Solution Managers International in Kuwait. The

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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 and pleadings submitted by the

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

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**Application:** The Adjudicating Authority found that the Financial Creditor had complied with

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## Parties

- **Judges:** SANJIV…; RAVICHANDRAN…
- **Appellants:** Sulaiman Abdul…
- **Respondents:** Stalwart Internati…

## Timeline

- **2012-05-11 — Incorporation of…**: Stalwart International Trading Private Limited was incorporated under the Companies Act,…
- **2012-11-20 — Cheque I…**: Financial Creditor advanced KD 51,500 to Solution Managers International as per the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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