# In the matter of DHRUV HARJAI Vs PPG ASIAN PAINTS PVT LTD

> NCLAT judgment dated 2025-07-15. Citation: TCN-2025-NCLAT-00305. The appeal challenges the order dated 08.12.2022, which admitted an application under Section…

- **Court:** NCLAT
- **Order date:** 15 Jul 2025
- **Citation:** TCN-2025-NCLAT-00305
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dhruv-harjai-vs-ppg-asian-paints-pvt-ltd-a14f5944

## Summary

### Background

The appeal challenges the order dated 08.12.2022, which admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by PPG Asian Paints Pvt. Ltd. (Financial Creditor) against Sidhi Vinayak Vehicles Pvt. Ltd. (Corporate Debtor). The application sought resolution for an amount of Rs. 42,35,000/-, and Rajan Sharma was appointed as the IRP.

## Facts

PPG Asian Paints Pvt. Ltd. (Financial Creditor) filed an application under Section 7 of the IBC against Sidhi Vinayak Vehicles Pvt. Ltd. (Corporate Debtor) for a default of Rs. 42,35,000/-.

The Corporate Debtor and the Financial Creditor entered into a Bodyshop Agreement dated 21.03.2018, where the Financial Creditor contributed Rs. 35,00,000/- as an upfront contribution.

The Corporate Debtor agreed to procure material worth Rs. 1 Cr. during the four-year tenure of the agreement but failed to procure material of Rs. 20 Lakh within one year, leading to a breach of the agreement.

The Financial Creditor claimed the date of default as 01.04.2019.

The Tribunal admitted the application and appointed Rajan Sharma as the IRP.

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## Issues and analysis

### Issue 1: Whether the amount advanced by Respondent No. 1 …

**Ratio:** The understanding between the parties is a commercial effect of borrowing which is

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**Reasoning:** The Tribunal considered the agreement between the parties and determined that the

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**Interpretation:** The Tribunal interpreted Section 5(8)(f) of the Code to cover transactions that

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**Application:** The Tribunal applied this interpretation to the facts of the case, finding that

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Dhruv H…
- **Respondents:** Sidhi Vinayak…; PPG Asian Paints…
- **Other parties:** HDFC…; Rajan S…
- **Advocates:** Adhitya Sri…; Rishabh Ka…; +8 more

## Timeline

- **2018-03-21 — Bodyshop Ag…**: The Corporate Debtor and the Financial…
- **2019-04-01 — Date of D…**: The Financial Creditor claimed the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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