Application u/s 7 of IBC duly admissible as there exists financial debt and default

Naresh Kumar Aggarwal Vs CFM Asset Reconstruction Pvt. Ltd. (NCLAT) NCLAT Delhi held that as there exists financial debt and default, application u/s 7 of the Insolvency and Bankruptcy Code (IBC) is duly admissible. Facts- State Bank of India sanctioned various credit facilities in favour of Action Ispat and Power Private Limited (Principal Borrower). In the year 2013, Master Restructuring Agreement was executed between the State Bank of India and several other Banks with the Principal Borrower. The Corporate Debtor – M/s Nikhil Footwear Pvt. Ltd. executed a Deed of Guarantee on 30.09.2013 i...