Euro Corporate Services Private Limited Vs Royal Fantasy Constructions Pvt. Ltd (NCLT Mumbai)
NCLT Mumbai held that non-payment of part of debt when it becomes due and payable amounts to default. Thus, application u/s. 7 of Insolvency and Bankruptcy Code [IBC] duly admitted since there exists financial debt, exceeding threshold limit, and the same is in default.
Facts- This Company Petition is filed under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Euro Corporate Services Private Limited, formerly known as Distent Barter Private Limited (the Petitioner/ Financial Creditor), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Royal Fantasy Constructions Pvt. Ltd. (the Corporate Debtor/Respondent).
Conclusion- Held that the non-payment of a part of the debt when it becomes due and payable will amount to default on the part of the corporate debtor and an order under Section 7 Insolvency Bankruptcy Code (” IBC “) must follow.
Held that there exists a financial debt, exceeding the threshold limit prescribed u/s 4 of IB Code and the same is in default. The Petition is complete in all respects. Thus, the Petition filed by Euro Corporate Services Private Limited, the Financial Creditor, under section 7 of the IBC read with Rule 4(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) against Royal Fantasy Constructions Pvt. Ltd., the Corporate Debtor, is admitted.
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