# 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-05232. The case pertains to a Company Petition (IB-280(ND)/2022) filed under Section 7 of the…

- **Court:** NCLT
- **Order date:** 3 Jan 2023
- **Citation:** TCN-2023-NCLT-05232
- **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-a32d1558

## Summary

### Background

The case pertains to a Company Petition (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 defaults in payment of interest on a loan.

## Facts

GMM Barter Private Limited, the Applicant/Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Value Solar Energy Private Limited, the Corporate Debtor. The petition was filed due to the Corporate Debtor's failure to repay a principal amount of Rs. 6,75,00,000/- and an interest of Rs. 76,62,011/- as stipulated under a Loan Agreement dated 16.12.2014. A recall notice was issued on 13.10.2015. The Corporate Debtor defaulted on two consecutive installments of loan repayment and interest, leading the Applicant to recall the amount. The Corporate Debtor admitted to the default in its reply affidavit. The Corporate Debtor had paid a monthly installment of Rs. 12,58,274/- in March 2015 but faced financial constraints

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## Issues and analysis

### Issue 1: Whether the petition under Section 7 of the IBC, 2016, should be admitted to initiate the Corporate …

**Ratio:** Section 7 of the IBC, 2016, allows a financial creditor to initiate CIRP against a

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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 of the IBC provides a mechanism for financial creditors to recover

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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 the…
- **2015-03-01 — Partial Payment by…**: The Corporate Debtor paid a monthly…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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