# In the matter of Mascot Capital and Marketing Private Limited (MCMPL) vs. Savair Energy Limited (SEL)

> NCLAT judgment dated 2023-09-27. Citation: TCN-2023-NCLAT-00159. Mascot Capital and Marketing Private Limited (MCMPL), the Financial Creditor, filed an appeal…

- **Court:** NCLAT
- **Order date:** 27 Sept 2023
- **Citation:** TCN-2023-NCLAT-00159
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mascot-capital-and-marketing-private-limited-mcmpl-vs-savair-energy-limited-850fd535

## Summary

### Background

Mascot Capital and Marketing Private Limited (MCMPL), the Financial Creditor, filed an appeal under Section 61 of the Insolvency and Bankruptcy Code (IBC), 2016, against the order dated January 20, 2023, passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench – IV). The Adjudicating Authority had dismissed MCMPL's application under Section 7 of the IBC, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against Savair Energy Limited (SEL), the Corporate Debtor. The application was based on a default amount of Rs. 3,70,00,000, comprising a principal amount of Rs. 3,20,00,000 and interest dues of Rs. 50,00,000. The Adjudicating Authority noted that the 'date of default' was not mentioned in Part IV of Form I, but the 'date of

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## Facts

Mascot Capital and Marketing Private Limited (MCMPL) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Savair Energy Limited (SEL) due to a default of Rs. 3,70,00,000. The Adjudicating Authority (AA) dismissed the application, noting discrepancies in the 'date of default'. MCMPL and SEL had entered into a Memorandum of Understanding (MoU) on March 4, 2017, for a joint venture. MCMPL paid Rs. 3.20 Crores to SEL between March 4, 2017, and April 29, 2017. The AA considered this MoU a joint venture agreement. A subsequent MoU dated April 29, 2017, terminated the earlier MoU. Another MoU of the same date acknowledged a loan of Rs. 3.20 Crores from MCMPL to SEL. A Board

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority (AA) erred in dismissing the application under Section 7 of the …

**Ratio:** The AA should have admitted the application under Section 7 of the IBC, 2016, if the debt

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**Reasoning:** The NCLAT found that there was no dispute regarding the disbursal of funds from the

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**Interpretation:** This implies that if the essential elements for initiating CIRP under Section 7

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**Application:** In this case, the NCLAT held that the AA erred in dismissing the application

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## Parties

- **Judges:** Anant Bijay…; Ajai Das Me…
- **Appellants:** Mascot Capital…
- **Respondents:** Savair Energy…; Savair Energy…
- **Advocates:** Manisha T.…; Nidhi N…; +3 more

## Timeline

- **2017-03-04 — MoU for Joint…**: Mascot Capital and Marketing Private Limited (MCMPL) and Savair Energy Limited (SEL)…
- **2017-03-04 — Disbursal o…**: MCMPL disbursed Rs. 3.20 Crores to SEL…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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