# In the matter of Dhruv Harjai vs. PPG Asian Paints Pvt. Ltd. & Ors.

> NCLAT judgment dated 2025-07-15. Citation: TCN-2025-NCLAT-00308. 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-00308
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dhruv-harjai-vs-ppg-asian-paints-pvt-ltd-ors-c851490e

## 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) for a resolution of Rs. 42,35,000/-. Rajan Sharma was appointed as the IRP.

## Facts

PPG Asian Paints Pvt. Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Sidhi Vinayak Vehicles Pvt. Ltd. (Corporate Debtor).

The application was for a resolution of an amount of Rs. 42,35,000/-.

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

The Suspended Director of the Corporate Debtor challenged the impugned order.

The Corporate Debtor entered into a Bodyshop Agreement with the Financial Creditor on 21.03.2018.

The Financial Creditor contributed Rs. 35,00,000/- as an upfront contribution for the purchase of paint equipment and promotional activities.

The Corporate Debtor agreed to procure material worth Rs. 1 Cr. during the four-year tenure of the agreement.

…

## 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 Counsel for the Respondent submitted that the amount of Rs. 35 Lakh was not given to

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**Interpretation:** The Tribunal interpreted the agreement and the promissory note to determine the

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**Application:** The Tribunal applied Section 5(8)(f) of the Code to determine that the

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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

- **2022-12-08 — Order Da…**: Order dated 08.12.2022 by which an application filed under Section 7 of the Insolvency…
- **2023-01-18 — Issuance of…**: At the time of issuance of notice on 18.01.2023 it was directed that no further steps…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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