# In the matter of Ashique Ponnamparambath & Anr. vs. BMW India Financial Services Pvt. Ltd.

> NCLAT judgment dated 2023-07-27. Citation: TCN-2023-NCLAT-00797. BMW India Financial Services Pvt. Ltd. (Financial Creditor) filed an application under…

- **Court:** NCLAT
- **Order date:** 27 Jul 2023
- **Citation:** TCN-2023-NCLAT-00797
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/ashique-ponnamparambath-anr-vs-bmw-india-financial-services-pvt-ltd-11b1f32a

## Summary

### Background

BMW India Financial Services Pvt. Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Koyenco Autos Pvt. Ltd. (Corporate Debtor) for resolution of a debt. The Adjudicating Authority admitted the application, leading to this appeal by members of the suspended board of directors of Koyenco Autos Pvt. Ltd.

## Facts

BMW India Financial Services Pvt. Ltd. granted four financial facilities to Koyenco Autos Pvt. Ltd. (Corporate Debtor).

The Financial Creditor filed an application for initiation of CIRP of the Corporate Debtor due to failure to repay the overdue amount.

The Adjudicating Authority admitted the application under Section 7 of the Code, imposed moratorium, and appointed IRP.

The Appellant argued that they were added as a Co-borrower but never disbursed any loan amount.

An addendum agreement was executed wherein the Appellant took over all rights and liabilities along with the Co-borrower.

The Corporate Debtor passed a board resolution consenting to assume the liability.

## Issues and analysis

### Issue 1: Whether the Appellant, being a co-borrower without disbursement of loan, falls within the …

**Ratio:** The Appellant, by choosing to join hands with the Co-borrower and owning all its rights

…

**Reasoning:** The Appellant passed a resolution and made a joint request to be added as a Co-borrower.

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**Interpretation:** The definition of 'financial debt' and 'financial creditor' should be

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**Application:** The judgment in Anuj Jain (Supra) is not applicable to the facts of this case.

…

## Parties

- **Judges:** Rakesh Kuma…; Shreesha…; +1 more
- **Appellants:** Ashique Ponnampara…
- **Respondents:** Koyenco Autos…; BMW India…
- **Other parties:** Ashiqu…; Shameena A…
- **Advocates:** P.H. Arvindh…; Diwakar Mah…

## Timeline

- **2021-10-06 — Impugned Ord…**: Date of the Impugned Order passed by the Adjudicating Authority (National Company Law…
- **2020-10-16 — Applicatio…**: Date on which BMW India Financial Services Pvt. Ltd. (Financial Creditor) filed an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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