# In the matter of MKY Constructions Private Limited IB-761-ND-2021

> NCLT judgment dated 2022-05-13. Citation: TCN-2022-NCLT-04810. The case involves an application filed by the Financial Creditor, M/s Om Telecom Logistics Pvt.…

- **Court:** NCLT
- **Order date:** 13 May 2022
- **Citation:** TCN-2022-NCLT-04810
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/mky-constructions-private-limited-ib-761-nd-2021-02dc492d

## Summary

### Background

The case involves an application filed by the Financial Creditor, M/s Om Telecom Logistics Pvt. Ltd., against the Corporate Debtor, M/s MKY Constructions Pvt. Ltd., under Section 7 of the IBC, 2016, for initiating Corporate Insolvency Resolution Process (CIRP).

## Facts

M/s Om Telecom Logistics Pvt. Ltd. (Financial Creditor) filed an application under Section 7 of IBC against M/s MKY Constructions Pvt. Ltd. (Corporate Debtor).

The Corporate Debtor borrowed a corporate loan of Rs. 1,00,00,000/- from the Financial Creditor in October 2015.

A loan agreement was executed on 01.10.2015 between Action Bridgegap Constructions Private Limited (Corporate Debtor) and the Financial Creditor.

The loan carried an interest rate of 15% per annum.

The Corporate Debtor initially paid interest amounting to Rs. 37,50,000/- until 31.03.2018.

After 31.03.2018, the Corporate Debtor stopped paying interest.

A cheque issued by the Corporate Debtor for Rs. 1,00,00,000/- was dishonored with the endorsement 'Funds Insufficient'.

…

## Issues and analysis

### Issue 1: Whether the Financial Creditor has provided sufficient evidence to prove the existence of a debt …

**Ratio:** Yes, the evidence placed by the Financial Creditor is sufficient to ascertain the

…

**Reasoning:** The Corporate Debtor failed to honor the terms of the agreement, and the cheque provided

…

**Interpretation:** The dishonored cheque and the failure to pay the loan amount constitute a

…

**Application:** The Adjudicating Authority relied on the evidence provided by the Financial

…

## Parties

- **Judges:** BACHU VENKAT…; Narender Kumar…
- **Appellants:** OM Telecom…
- **Respondents:** M/s MKY Constructi…
- **Other parties:** Reetesh Kumar…
- **Advocates:** Arun Agg…

## Timeline

- **2015-10-01 — Loan Agre…**: Loan agreement executed between Action Bridgegap Constructions Private Limited and the…
- **2018-03-31 — Cessation of Interest…**: Corporate Debtor stopped paying…

## 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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