# In the matter of JBO Globeworld LLP IB-630(PB)-2021

> NCLT judgment dated 2022-07-22. Citation: TCN-2022-NCLT-04572. The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 22 Jul 2022
- **Citation:** TCN-2022-NCLT-04572
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/jbo-globeworld-llp-ib-630pb-2021-0fff2c24

## Summary

### Background

The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against JBO Globeworld LLP.

## Facts

The Financial Creditor and Corporate Debtor entered into a Loan cum-Hypothecation agreement on 01.04.2020.

The Financial Creditor provided financial assistance to the Corporate Debtor through a Term Loan of Rs. 4 Crores and a Working Capital Loan with a maximum limit of Rs. 100 crores.

The Term Loan of Rs. 4 crore was given for 1 year at an interest rate of 9.00% P.A. with a penal interest of 2% P.A. on overdue amounts.

The Working Capital Loan up to Rs. 100 Crores was to be given for 3 years at an interest rate of 9.20% P.A. with a penal interest of 1% P.A.

On 05.04.2021, the Financial Creditor sent a letter to the Corporate Debtor for repayment of the term loan.

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is complete and meets the requirements for …

**Ratio:** Section 7 of the IBC requires the applicant to establish that there is a financial debt

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**Reasoning:** The Tribunal examined the documents submitted by the Financial Creditor and the Corporate

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**Interpretation:** The application was deemed complete as it met the requirements of Section 7 of

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**Application:** The Tribunal admitted the

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Gogia Leasing…
- **Respondents:** JBO Globewo…
- **Other parties:** Sanjay…

## Timeline

- **2020-04-01 — Loan Agre…**: Financial Creditor and Corporate Debtor entered…
- **2021-04-05 — Repayment R…**: Financial Creditor sent a letter to…

## 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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