# In the matter of Imdadali M Momin & Ors. vs. Pellucid Lifesciences Pvt. Ltd.

> NCLAT judgment dated 2024-09-09. Citation: TCN-2024-NCLAT-00209. The appeal arises from an order passed by the National Company Law Tribunal (NCLT), Ahmedabad…

- **Court:** NCLAT
- **Order date:** 9 Sept 2024
- **Citation:** TCN-2024-NCLAT-00209
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/imdadali-m-momin-ors-vs-pellucid-lifesciences-pvt-ltd-d97512bf

## Summary

### Background

The appeal arises from an order passed by the National Company Law Tribunal (NCLT), Ahmedabad Bench, which rejected a petition to initiate the Corporate Insolvency Resolution Process (CIRP) against Pellucid Lifesciences Pvt. Ltd. The financial creditors, Imdadali M Momin & Ors., filed the application under Section 7 of the Insolvency & Bankruptcy Code (IBC), claiming a debt of ₹1,25,44,997.25 with 12% interest per annum. The NCLT rejected the application because there was no clear agreement between the creditors and the Corporate Debtor regarding loan terms, repayment schedule, and interest rate. The financial creditors appealed the NCLT's decision.

## Facts

The Corporate Debtor (Pellucid Lifesciences Pvt. Ltd.) was incorporated on August 30, 2013. Between 2013 and 2022, the Corporate Debtor approached the appellants (Imdadali M Momin & Ors.) for financial assistance, resulting in loans totaling ₹1,25,44,997.25. The date of default was mentioned as November 30, 2022. The Corporate Debtor repaid ₹99,07,375.48 during the CIRP proceedings. There was no formal loan agreement specifying the principal amount, interest rate, or payment frequency. The appellants filed an application under Section 7 of the IBC to initiate insolvency proceedings. The NCLT rejected the application, stating that there was no clear agreement regarding the loan terms. The appellants argued that the NCLT erred in dismissing the application and that

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## Issues and analysis

### Issue 1: Whether the loan qualifies as a financial debt under Section 7 of the Insolvency and Bankruptcy …

**Ratio:** A financial debt requires a debt along with interest, disbursed against the consideration

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**Reasoning:** The Tribunal found that there was no formal loan agreement between the appellants and the

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**Interpretation:** The definition of 'financial debt' under Section 5(8) of the IBC requires that

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**Application:** In this case, the absence of a formal loan agreement and the lack of clarity

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Imdadali M…
- **Respondents:** Pellucid Lifescien…

## Timeline

- **2013-08-30 — Incorporation of…**: Pellucid Lifesciences…
- **2013-01-01 — Loans Adv…**: Between 2013 and 2022, the Corporate Debtor approached the appellants for financial…

## 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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