# In the matter of Venkateshwar Vyawsay Private Limited CP (IB) No.635-KB-2020

> NCLT judgment dated 2022-05-25. Citation: TCN-2022-NCLT-04773. Chaitanya Manufacturers Private Limited filed a Company Petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 25 May 2022
- **Citation:** TCN-2022-NCLT-04773
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/venkateshwar-vyawsay-private-limited-cp-ib-no635-kb-2020-07817f7b

## Summary

### Background

Chaitanya Manufacturers Private Limited filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Venkateshwar Vyawsay Private Limited, alleging default on an Inter-Corporate Deposit (ICD).

## Facts

Chaitanya Manufacturers Private Limited (Financial Creditor) provided an Inter-Corporate Deposit (ICD) of Rs.5,00,000/- to Venkateshwar Vyawsay Private Limited (Corporate Debtor).

The ICD carried a simple interest rate of 18% per annum.

The date of default was 14 August, 2019.

The Corporate Debtor acknowledged the loan via a letter dated 15 May, 2019.

An Inter-Corporate Deposit Agreement was entered into between the parties on 17 May, 2019.

The Corporate Debtor failed to pay the principal amount along with interest.

The Financial Creditor sent demand notices on 23 August, 2019, 04 September, 2019 and 15 October, 2019, but received no payment or reply.

The Corporate Debtor's balance sheets showed sufficient funds and significant loans and advances given to others.

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## Issues and analysis

### Issue 1: Whether there was …

**Ratio:** The court relied on the judgment by the Hon'ble NCLAT in Hytone Merchants Private Limited

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**Reasoning:** The court observed that the Corporate Debtor had sufficient funds and had also given

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**Interpretation:** The court interpreted these facts as indicative of a potential collusion

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**Application:** Based on the observed facts and the precedent set by the NCLAT, the court

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Chaitanya…
- **Respondents:** Venkateshwar…
- **Other parties:** Tapas Chakr…
- **Advocates:** Ranjeet P…

## Timeline

- **2020-02-04 — Petition…**: The present Petition was filed…
- **2022-04-01 — Date of H…**: Date of hearing: 01…

## 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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