# In the matter of Chaitanya Neer Jal Private Limited CP (IB) No.744-MB-IV-2020

> NCLT judgment dated 2023-06-06. Citation: TCN-2023-NCLT-05494. The case involves an application filed by Samata Nagari Sahkari Patsanstha Maryadit, the…

- **Court:** NCLT
- **Order date:** 6 Jun 2023
- **Citation:** TCN-2023-NCLT-05494
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/chaitanya-neer-jal-private-limited-cp-ib-no744-mb-iv-2020-74154647

## Summary

### Background

The case involves an application filed by Samata Nagari Sahkari Patsanstha Maryadit, the Financial Creditor/Applicant, under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Chaitanya Neer Jal Private Limited, the Corporate Debtor.

## Facts

Samata Nagari Sahkari Patsanstha Maryadit filed an application under Section 7 of the I&B Code to initiate CIRP against Chaitanya Neer Jal Private Limited.

The claimed default amount is Rs. 1,87,60,430/-, with the date of default being 12.08.2018.

The Corporate Debtor had approached the Financial Creditor for credit facilities, including a working capital loan of Rs. 1,00,00,000/-.

The Corporate Debtor executed a Deed of Mortgage dated 30.09.2016 and a rectified mortgage deed dated 13/01/2017 in favor of the Financial Creditor.

The Financial Creditor sanctioned credit facilities vide its Resolution dated 19/01/2017, and the amount was disbursed on 25/01/2017.

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the I&B Code for initiating CIRP against the …

**Ratio:** The application is maintainable if there is a debt and default, and the application is

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**Reasoning:** The NCLT considered the pleadings, documents, and arguments presented by the Financial

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**Interpretation:** Section 7 of the I&B Code allows a Financial Creditor to initiate CIRP if a

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**Application:** The NCLT found that a debt and default existed, and the application was

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** SAMATA NAGARI…
- **Respondents:** Chaitanya Neer…
- **Other parties:** Vinit Ga…; Debi Prasanna…
- **Advocates:** Seetalaxmi…

## Timeline

- **2016-08-00 — Corporate Debtor…**: The Corporate Debtor approached the Financial Creditor for credit facilities for business…
- **2016-08-29 — Resolution approving…**: The Financial Creditor approved the credit…

## 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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