# In the matter of Unik bazar Limited (IB)-460(ND)-2021

> NCLT judgment dated 2022-11-24. Citation: TCN-2022-NCLT-00353. Morari Commercial Private Limited, the Financial Creditor, filed an application under Section 7…

- **Court:** NCLT
- **Order date:** 24 Nov 2022
- **Citation:** TCN-2022-NCLT-00353
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/unik-bazar-limited-ib-460nd-2021-5db470a2

## Summary

### Background

Morari Commercial Private Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Unik Bazar Limited, the Respondent. The Respondent, Unik Bazar Limited, is a company incorporated on 16.09.2011. The Applicant stated that the Respondent approached them for financial assistance to run their business, leading to an agreement on 15.09.2018, where the Applicant agreed to provide a loan of Rs. 90,00,000/- in two tranches. The Applicant claimed that the Respondent defaulted on repayment, leading to the application for CIRP.

## Facts

Morari Commercial Private Limited (Financial Creditor) provided a loan of Rs. 90,00,000 to Unik Bazar Limited (Respondent) based on an agreement dated 15.09.2018. The loan was disbursed in two tranches: Rs. 50,00,000 on 27.09.2018 and Rs. 40,00,000 on 01.10.2018. The Respondent was to use the loan for business purposes and repay it on demand. The Applicant claimed a default of Rs. 1,03,63,446 as of 04.08.2021. The Respondent acknowledged the debt in its audited balance sheets and tax audit report. The Applicant sent a demand letter on 03.08.2021, seeking repayment. The Respondent, in a letter dated 04.08.2021, admitted the debt but expressed inability to repay due to financial issues. The Respondent's authorized share capital is Rs. 10,00,00,000 and paid-up share

…

## Issues and analysis

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

**Ratio:** Section 7(5) of the IBC allows the Adjudicating Authority to admit an application if it

…

**Reasoning:** The Adjudicating Authority found that the application was complete and the Applicant had

…

**Interpretation:** Section 7 of the IBC provides the framework for a financial creditor to

…

**Application:** The Applicant provided the loan agreement, bank statements showing

…

## Parties

- **Judges:** SH. BACHU VENKAT…; SH. L. N.…
- **Appellants:** Morari Commercial…
- **Respondents:** Unik Bazar…

## Timeline

- **2011-09-16 — Incorporation of…**: Unik Bazar Limited incorporated…
- **2018-09-15 — Loan Agre…**: Agreement between Morari Commercial Private Limited and Unik Bazar Limited for a loan of…

## 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/unik-bazar-limited-ib-460nd-2021-5db470a2