NCLT admitted plea u/s 7 as documents produced by financial creditor established debt and default by corporate debtor

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  • Last Updated on 5 August, 2021

Corporate insolvency resolution process

Case details: Tata Capital Financial Services Ltd. v. Kay Em Copper (P.) Ltd. - [2021] 128 381 (NCLT - New Delhi)

Judiciary and Counsel Details

    • P.S.N. Prasad, Judicial Member and Dr. V.K. Subburaj, Technical Member.
    • Savyasachi K. Sahai, Adv. for the Appellant.
    • Niti Arora Sachar and Rahul Malhotra, Adv. for the Respondent.

Facts of the Case

The Applicant/financial creditor, a non-banking finance company-sanctioned term loan to the corporate debtor company. Thereafter, the corporate debtor committed default in repayment.

Consequently, the financial creditor filed an application under section 7 of the Insolvency and Bankruptcy Code, 2016. Along with said application financial creditor placed on record a letter submitted by the corporate debtor wherein, corporate debtor confirmed the remaining balance of the said loan to the financial creditor.

Since the documents furnished by the financial creditor clearly established that there was default on part of the corporate debtor in payment of financial debt. Therefore, an instant application under section 7 was to be admitted.

List of Cases Referred to

    • Deepak Khosla v. Union of India [W.P. (C) No. 7651 of 2009, dated 8-10-2009] (para 2)
    • Satyaprakash Aggarwal v. Vistar Metal Industries Ltd. [Co. Appeal (AT) (Insolvency) No. 136 of 2018, dated 21-5-2018] (para 7)
    • Binani Industries Ltd. v. Bank of Baroda [2018] 99 164/150 SCL 703 (NCL-AT) (para 7)
    • Excel Metal Process Ltd. v. Benteler Trading International GMBH [Co. Appeal (AT) (Insolvency) No. 782 of 2019, dated 21-8-2019] (para 7)

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