The case involves an appeal against an order by the National Company Law Tribunal (NCLT), Principal Bench, New Delhi, which rejected an application filed by M/s. Carnoustie Management India Pvt. Ltd. (Appellant) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) against CBS International Projects Pvt. Ltd. (Corporate Debtor). The NCLT held that the mere grant of a loan does not automatically qualify the Appellant as a 'Financial Creditor' under Section 5(7) of the I&B Code, as the loan was not disbursed for the time value of money, thus not meeting the definition of 'Financial Debt' under Section 5(8). The Appellant claimed that the Respondent was its subsidiary and was granted a loan facility, but the Respondent argued that the loan
…M/s. Carnoustie Management India Pvt. Ltd. (Appellant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against CBS International Projects Pvt. Ltd. (Respondent). The Appellant claimed to be a financial creditor based on a loan agreement. The Respondent was incorporated on March 29, 2007, and was initially a subsidiary of the Appellant, acting as a special purpose vehicle for a real estate project. A loan agreement dated May 11, 2007, granted the Respondent a loan facility of Rs. 40 Crores. The loan carried an interest rate of 12% per annum, with a penal interest of 24%. The Respondent submitted an application for plot allotment in NOIDA on August 6, 2007, allegedly benefiting from the Appellant's financial assistance. The Respondent
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The case involves an appeal against an order by the National Company Law Tribunal (NCLT), Principal Bench, New Delhi, which rejected an application filed by M/s. Carnoustie Management India Pvt. Ltd. (Appellant) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) against CBS International Projects Pvt. Ltd. (Corporate Debtor). The NCLT held that the mere grant of a loan does not automatically qualify the Appellant as a 'Financial Creditor' under Section 5(7) of the I&B Code, as the loan was not disbursed for the time value of money, thus not meeting the definition of 'Financial Debt' under Section 5(8). The Appellant claimed that the Respondent was its subsidiary and was granted a loan facility, but the Respondent argued that the loan
…M/s. Carnoustie Management India Pvt. Ltd. (Appellant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against CBS International Projects Pvt. Ltd. (Respondent). The Appellant claimed to be a financial creditor based on a loan agreement. The Respondent was incorporated on March 29, 2007, and was initially a subsidiary of the Appellant, acting as a special purpose vehicle for a real estate project. A loan agreement dated May 11, 2007, granted the Respondent a loan facility of Rs. 40 Crores. The loan carried an interest rate of 12% per annum, with a penal interest of 24%. The Respondent submitted an application for plot allotment in NOIDA on August 6, 2007, allegedly benefiting from the Appellant's financial assistance. The Respondent
…CBS International…
Alleged date of the…