# In the matter of Value Solar Energy Private Limited Company Petition  No. IB-280(ND)-2022

> NCLT judgment dated 2023-01-03. Citation: TCN-2023-NCLT-05235. The case pertains to a Company Petition, CP (IB)-280(ND)/2022, filed under Section 7 of the…

- **Court:** NCLT
- **Order date:** 3 Jan 2023
- **Citation:** TCN-2023-NCLT-05235
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/value-solar-energy-private-limited-company-petition-no-ib-280nd-2022-64554538

## Summary

### Background

The case pertains to a Company Petition, CP (IB)-280(ND)/2022, filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, by GMM Barter Private Limited (Applicant/Petitioner) against Value Solar Energy Private Limited (Corporate Debtor). The petition seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to default in payment of interest on a loan.

## Facts

GMM Barter Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Value Solar Energy Private Limited, the Corporate Debtor. The petition was filed due to the Corporate Debtor's default in payment of interest on a loan. The loan agreement was dated 16.12.2014. The Applicant/Financial Creditor issued a recall notice on 13.10.2015. The Respondent failed to repay Rs. 6,75,00,000/- towards principal and Rs. 76,62,011/- towards interest within 10 days of the recall notice. The Respondent defaulted on two consecutive loan installments under Clause 10 of the agreement. The Respondent admitted to defaulting on the loan agreement in its reply affidavit. The Respondent paid a

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## Issues and analysis

### Issue 1: Whether the petition under Section 7 of the IBC should be admitted to initiate CIRP against the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court noted that the Corporate Debtor admitted its liability in its reply affidavit

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover debts from

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**Application:** The Corporate Debtor's admission of liability, coupled with the evidence of

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## Parties

- **Judges:** BACHU VENKAT…; BINOD KUMAR…
- **Appellants:** GMM Barter…
- **Respondents:** Value Solar…

## Timeline

- **2014-12-16 — Loan Agreeme…**: Date of the loan agreement between GMM Barter Private Limited and Value Solar Energy…
- **2015-03-01 — Partial Payment by…**: Value Solar Energy Private Limited paid a…

## 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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