The case involves an appeal against an order dated 09.02.2023 passed by the National Company Law Tribunal (NCLT), Mumbai, which dismissed an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) by Advantagesai Projects Private Ltd (Appellant) against Akshay Techforge Pvt Ltd (Respondent). The appellant claimed that the respondent defaulted on a loan, leading to a financial debt. The NCLT had held that the transaction between the appellant and respondent was a sale/purchase transaction and not a 'financial debt'. The appellant argued that the respondent had to return the amount paid on its behalf with interest, indicating time value of money, thus qualifying as a 'Financial Creditor' under Section 5(7) of the IBC.
Advantagesai Projects Private Ltd (Appellant) provided financial assistance to Akshay Techforge Pvt Ltd (Respondent). The respondent had defaulted on a loan from State Bank of India and needed funds to settle the OTS Amount. The appellant disbursed Rs. 48,36,540 up to 12.11.2018. An Agreement to Sale was executed on 09.04.2019, acknowledging the earlier disbursal and agreeing to lend another Rs. 1,00,00,000, which was paid directly into the respondent's OTS account on 12.04.2019. The respondent was required to repay the sum by 31.03.2020, failing which they would execute a Sale Deed for plots of land. Another agreement was executed on 01.04.2020, extending the repayment terms to 31.03.2021. A Memorandum of Understanding (MoU) dated 09.04.2020 stipulated that the
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Appellant disbu…
Agreement to Sale executed between Appellant and…
The case involves an appeal against an order dated 09.02.2023 passed by the National Company Law Tribunal (NCLT), Mumbai, which dismissed an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) by Advantagesai Projects Private Ltd (Appellant) against Akshay Techforge Pvt Ltd (Respondent). The appellant claimed that the respondent defaulted on a loan, leading to a financial debt. The NCLT had held that the transaction between the appellant and respondent was a sale/purchase transaction and not a 'financial debt'. The appellant argued that the respondent had to return the amount paid on its behalf with interest, indicating time value of money, thus qualifying as a 'Financial Creditor' under Section 5(7) of the IBC.
Advantagesai Projects Private Ltd (Appellant) provided financial assistance to Akshay Techforge Pvt Ltd (Respondent). The respondent had defaulted on a loan from State Bank of India and needed funds to settle the OTS Amount. The appellant disbursed Rs. 48,36,540 up to 12.11.2018. An Agreement to Sale was executed on 09.04.2019, acknowledging the earlier disbursal and agreeing to lend another Rs. 1,00,00,000, which was paid directly into the respondent's OTS account on 12.04.2019. The respondent was required to repay the sum by 31.03.2020, failing which they would execute a Sale Deed for plots of land. Another agreement was executed on 01.04.2020, extending the repayment terms to 31.03.2021. A Memorandum of Understanding (MoU) dated 09.04.2020 stipulated that the
…Appellant disbu…
Agreement to Sale executed between Appellant and…