# In the matter of Frugal Developers Private Limited Company Petition No. (IB)-110(ND)-2023

> NCLT judgment dated 2023-07-03. Citation: TCN-2023-NCLT-05387. Covet Financial Services Private Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 3 Jul 2023
- **Citation:** TCN-2023-NCLT-05387
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/frugal-developers-private-limited-company-petition-no-ib-110nd-2023-98413fd0

## Summary

### Background

Covet Financial Services Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Frugal Developers Private Limited.

## Facts

Covet Financial Services Private Limited (Applicant) disbursed a loan of Rs. 1,00,00,000/- to Frugal Developers Private Limited (Respondent) as per a Loan Facility Agreement dated 01.03.2022.

The Respondent failed to adhere to the EMI due dates, leading the Applicant to issue a default letter dated 17.06.2022.

The Respondent requested two months' time to make complete payment, which the Applicant granted, but the Respondent still failed to make the payment.

The Applicant sent a demand notice dated 30.09.2022, but the Respondent did not reply.

The Applicant sent a Loan Recall Notice dated 16.01.2023, which was duly received by the Respondent on 23.01.2023.

…

## Issues and analysis

### Issue 1: Whether the Applicant has established the existence of a financial debt and default on the part of …

**Ratio:** Yes, the Applicant provided sufficient material and the Respondent admitted to the

…

**Reasoning:** The Bench observed that there was sufficient material on record to establish the

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**Interpretation:** The admission of default by the

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**Application:** The facts and documents presented by the Applicant, coupled with the

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## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** Covet Financial…
- **Respondents:** Frugal Developers…
- **Other parties:** Anil Kumar…
- **Advocates:** Palash S. S…; Lavish…

## Timeline

- **01.03.2022 — Loan Facility…**: Loan Facility Agreement was entered between Covet Financial Services Private Limited and…
- **17.06.2022 — Default L…**: Covet Financial Services Private Limited issued a default letter to Frugal Developers…

## 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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