# In the matter of Jatin Mehta vs. Rushabh Civil Contractors Pvt. Ltd. Through: Debi Prasanna Sarangi, IRP & Anr.

> NCLAT judgment dated 2024-10-29. Citation: TCN-2024-NCLAT-00136. This case involves an appeal against the order dated 26.07.2024 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 29 Oct 2024
- **Citation:** TCN-2024-NCLAT-00136
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jatin-mehta-vs-rushabh-civil-contractors-pvt-ltd-through-debi-prasanna-sarangi-i-f2367650

## Summary

### Background

This case involves an appeal against the order dated 26.07.2024 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Court-I in CP(IB) 244/2023, which admitted a Section 7 application filed by the Financial Creditor through the Interim Resolution Professional (IRP). The appeal was filed by a Suspended Director of the Corporate Debtor, challenging the admission of the Section 7 application. The Financial Creditor, Rushabh Civil Contractors Private Limited, had disbursed Rs.3.50 Crores to the Corporate Debtor on 16.12.2016. The Corporate Debtor also booked interest and TDS in its ledger. The IRP, after examining the Corporate Debtor's books, found Rs.4,85,46,862/- due as of 31.03.2020. A notice dated 29.11.2022 was issued by the IRP

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## Facts

Rushabh Civil Contractors Private Limited (Financial Creditor) disbursed Rs.3.50 Crores to an unnamed Corporate Debtor on 16.12.2016. The Corporate Debtor booked interest and TDS on this amount. On 27.06.2022, NCLT Mumbai admitted a Section 7 application against the Financial Creditor. The IRP found Rs.4,85,46,862/- due from the Corporate Debtor as of 31.03.2020. A demand notice dated 29.11.2022 for Rs.4,74,48,109/- was issued by the IRP, but received no response. The Financial Creditor filed CP(IB) No.244 of 2023, claiming Rs.9,56,83,836/- outstanding as of 31.03.2022, with a default date of 07.12.2022. The Corporate Debtor argued the financial debt was not proven and the application was time-barred, citing a letter dated 20.08.2020 agreeing to repayment by

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## Issues and analysis

### Issue 1: Whether the amount claimed by the Applicant …

**Ratio:** A financial debt exists when there is a debt along with interest, and the ledgers of both

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**Reasoning:** The court examined the ledgers of both the corporate debtor and the financial creditor,

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**Interpretation:** The presence of interest and TDS entries in the ledgers, coupled with a clear

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**Application:** In this case, the ledgers of both parties showed interest and TDS entries, and

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…
- **Appellants:** Jatin M…
- **Respondents:** Rushabh Civil…
- **Advocates:** Kunal T…; Kush Chat…; +6 more

## Timeline

- **2016-12-16 — Loan Disbur…**: Rushabh Civil Contractors Private Limited disbursed Rs.3.50 Crores to the Corporate…
- **2020-03-31 — Outstanding…**: IRP found Rs.4,85,46,862/- due…

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