# In the matter of Uniply Decor Limited CP-IB-137-CHE-2021

> NCLT judgment dated 2022-03-11. Citation: TCN-2022-NCLT-03771. The case involves an application filed by YES Bank Limited, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 11 Mar 2022
- **Citation:** TCN-2022-NCLT-03771
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/uniply-decor-limited-cp-ib-137-che-2021-6a8c0647

## Summary

### Background

The case involves an application filed by YES Bank Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Uniply Decor Limited, the Corporate Debtor. The Financial Creditor claimed a default of Rs. 34,36,48,107.63 as of 17.05.2021. The Corporate Debtor's account was classified as NPA on 29.01.2020. A One Time Settlement (OTS) was offered by the Personal Guarantor, but it was later revoked due to defaults in the terms of the OTS. The Financial Creditor issued a demand notice under Section 13(2) of the SARFAESI Act. The Corporate Debtor admitted to the outstanding debt but sought time for settlement.

## Facts

YES Bank Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Uniply Decor Limited, the Corporate Debtor. The Financial Creditor claimed a sum of Rs. 34,36,48,107.63/- as on 17.05.2021. The Corporate Debtor's account was classified as NPA on 29.01.2020. The Financial Creditor issued a notice for recall of credit facilities dated 11.06.2020, a notice for invocation of personal guarantee dated 11.06.2020, and a demand notice dated 11.06.2020. An affidavit dated 11.09.2020 was filed in C.S. No.77 of 2020 before the Hon'ble HC of Madras. An order dated 16.12.2020 was passed by the Hon'ble HC of Madras in OA.No 689 of 2020 in CS No 77 of 2020. A

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## Issues and analysis

### Issue 1: Whether the 'debt' and 'default' have been established beyond reasonable doubt by the Financial …

**Ratio:** The principle is that if the financial debt and default are established, the application

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**Reasoning:** The Tribunal noted that the Corporate Debtor did not deny the debt during oral arguments

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**Interpretation:** The interpretation of 'debt' and 'default' under the IBC requires the Financial

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**Application:** In this case, the Financial Creditor provided sufficient evidence, including

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## Parties

- **Judges:** R. Sucha…; SAMEER…
- **Appellants:** Yes Bank L…
- **Respondents:** Uniply Décor…

## Timeline

- **2020-01-29 — Account Classified as…**: The account of the Corporate Debtor was…
- **2020-05-14 — Demand Notice under…**: Financial Creditor issued a Demand notice to the Corporate Debtor and the Personal…

## 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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