# In the matter of Intec Capital Ltd. vs. Shwet Biotech Pvt. Ltd.

> NCLAT judgment dated 2023-07-03. Citation: TCN-2023-NCLAT-00424. The appeal was filed against the order dated 04.10.2022 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 3 Jul 2023
- **Citation:** TCN-2023-NCLAT-00424
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/intec-capital-ltd-vs-shwet-biotech-pvt-ltd-9620405d

## Summary

### Background

The appeal was filed against the order dated 04.10.2022 passed by the National Company Law Tribunal, Mumbai Bench Court-IV, which dismissed an application bearing C.P.(IB) 1191 (MB)/ 2020 on the ground of being not maintainable. The appellant, Intec Capital Ltd., is a Non-Banking Finance Company (NBFC) and the financial creditor of Shwet Biotech Private Limited (Respondent). Intec Capital Limited provided loan facilities along with Respondent who furnished the Corporate Guarantee in the financial facility availed by M/s.Shwet Realtors and stepped into the shoes of a borrower subsequently when borrower failed to repay the dues/loans. The ‘Financial Creditor' entered into a Loan Agreement/ Loan Account No. LNMUM00613-140003158 dated 31.12.2013 with the Borrower and

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## Facts

Intec Capital Ltd., a Non-Banking Finance Company (NBFC), is the financial creditor of Shwet Biotech Private Limited, a proprietary firm. A loan agreement was entered into on 31.12.2013, where Shwet Biotech Private Limited acted as the Corporate Guarantor/Corporate Debtor for a loan amount of Rs. 3,57,14,286 at 14% p.a. to be repaid in 60 EMIs. The loan was initially availed by M/s.Shwet Realtors, with Shwet Biotech Private Limited providing a corporate guarantee. When M/s.Shwet Realtors failed to repay the loan, Intec Capital Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority dismissed the application, stating that it was not maintainable against the Corporate Guarantor. The appellant, Intec Capital Ltd.,

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## Issues and analysis

### Issue 1: Whether an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) can be filed …

**Ratio:** The ratio decidendi is derived from the Supreme Court's decision in K. Paramasivam Vs.

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**Reasoning:** The court reasoned that the Adjudicating Authority's dismissal of the application was

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**Interpretation:** This interprets Section 7 of the IBC in conjunction with the principles of

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**Application:** In this case, Shwet Biotech Private Limited acted as the corporate guarantor

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…
- **Appellants:** Intec Capit…
- **Respondents:** Shwet Biotech…

## Timeline

- **2022-10-04 — Order by…**: The National Company Law Tribunal, Mumbai Bench Court-IV, passed an order dismissing the…
- **2022-11-25 — Notice to Res…**: Notice was issued to…

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