Mr. Rajender Prasad Mittal (Appellant) filed a Section 7 IBC petition against M/s Jaikrishan Estates Private Limited (Corporate Debtor), claiming to be a Financial Creditor who advanced an interest-free loan of Rs. 6,86,44,042/- in FY 2014-15. The Corporate Debtor repaid Rs. 3 Crores, leaving an outstanding principal of Rs. 6,86,44,042/-. The Appellant argued the debt was acknowledged in the Corporate Debtor's balance sheets as "long term borrowing" and, as a former director, the funds had a commercial effect of borrowing. The Adjudicating Authority (NCLT) rejected the petition, concluding the debt did not qualify as financial debt under Section 5(8) of the IBC, without issuing notice to the Respondent or fully examining the details.
Mr. Rajender Prasad Mittal (Appellant) claims to be a Financial Creditor.
The Appellant advanced a loan of Rs. 6,86,44,042/- to the Corporate Debtor, M/s Jaikrishan Estates Private Limited, in the Financial Year 2014-15.
The loan was disbursed from the Appellant's personal bank account maintained with Axis Bank.
The Corporate Debtor repaid Rs. 3 Crores, but Rs. 6,86,44,042/- against the principal remains outstanding.
The Appellant claims the outstanding amount is shown in the Corporate Debtor's books under "long term borrowing".
The Corporate Debtor acknowledged the aforesaid amount in its balance sheet for the Financial Year 2016-17, 2018-19, 2020-21, and 2022-23.
…Sign in to view the parties.
Respondent company, M/s…
The ownership and control of the Respondent…
Mr. Rajender Prasad Mittal (Appellant) filed a Section 7 IBC petition against M/s Jaikrishan Estates Private Limited (Corporate Debtor), claiming to be a Financial Creditor who advanced an interest-free loan of Rs. 6,86,44,042/- in FY 2014-15. The Corporate Debtor repaid Rs. 3 Crores, leaving an outstanding principal of Rs. 6,86,44,042/-. The Appellant argued the debt was acknowledged in the Corporate Debtor's balance sheets as "long term borrowing" and, as a former director, the funds had a commercial effect of borrowing. The Adjudicating Authority (NCLT) rejected the petition, concluding the debt did not qualify as financial debt under Section 5(8) of the IBC, without issuing notice to the Respondent or fully examining the details.
Mr. Rajender Prasad Mittal (Appellant) claims to be a Financial Creditor.
The Appellant advanced a loan of Rs. 6,86,44,042/- to the Corporate Debtor, M/s Jaikrishan Estates Private Limited, in the Financial Year 2014-15.
The loan was disbursed from the Appellant's personal bank account maintained with Axis Bank.
The Corporate Debtor repaid Rs. 3 Crores, but Rs. 6,86,44,042/- against the principal remains outstanding.
The Appellant claims the outstanding amount is shown in the Corporate Debtor's books under "long term borrowing".
The Corporate Debtor acknowledged the aforesaid amount in its balance sheet for the Financial Year 2016-17, 2018-19, 2020-21, and 2022-23.
…Respondent company, M/s…
The ownership and control of the Respondent…