# In the matter of Tattva Valuers Private Limited C.P. (IB) No. 148-KB-2021

> NCLT judgment dated 2022-06-15. Citation: TCN-2022-NCLT-02223. Seri Equipment Finance Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 15 Jun 2022
- **Citation:** TCN-2022-NCLT-02223
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tattva-valuers-private-limited-cp-ib-no-148-kb-2021-9e68027c

## Summary

### Background

Seri Equipment Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Tattva Valuers Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The application was based on the Corporate Debtor's alleged default on financial obligations arising from Rupee Facility Agreements. The Financial Creditor claimed that the Corporate Debtor had failed to meet its repayment obligations despite repeated reminders.

## Facts

Seri Equipment Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Tattva Valuers Private Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor defaulted on financial obligations arising from two Rupee Facility Agreements: one dated 25th July, 2018, for Rs.300,00,00,000/- and another dated 31st October, 2019, for Rs.250,00,00,000/-. The Corporate Debtor availed both fund-based and non-fund-based assistance through these agreements. The Financial Creditor disbursed funds and arranged Letters of Credit for the Corporate Debtor. The Corporate Debtor failed to meet its repayment obligations despite reminders. The total amount in default as of 31st March, 2021, was

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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 NCLT considered the arguments presented by both parties and examined the documents

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger CIRP when a

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**Application:** The NCLT determined that the Financial Creditor's application met the

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Seri Equipment…
- **Respondents:** Tattva Valuers…

## Timeline

- **2021-03-01 — Demand N…**: Financial Creditor sent a final…
- **2021-03-06 — Corporate Debto…**: Corporate Debtor replied to the…

## 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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