# In the matter of Narendra Kumar Agarwal and Anr. Vs. Monotrone Leasing Pvt. Ltd. and Anr. CA (AT) (Ins) No. 549of 2020

> NCLAT judgment dated 19 Jan 2021. Citation: TCN-2021-NCLAT-00398. This appeal challenges an order dated March 12, 2020, issued by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 19 Jan 2021
- **Citation:** TCN-2021-NCLAT-00398
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/narendra-kumar-agarwal-and-anr-vs-monotrone-leasing-pvt-ltd-and-anr-ca-c446c6ee

## Summary

### Background

This appeal challenges an order dated March 12, 2020, issued by the Adjudicating Authority (National Company Law Tribunal, Kolkata Bench), which admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The application was filed by Monotrone Leasing Private Limited (Financial Creditor/Respondent No.1) against BD Motors Limited (Corporate Debtor), represented by Narendra Kumar Agarwal and Suman Agarwal (Appellants). The Financial Creditor had extended an inter-corporate loan of Rs. 25 lakhs to the Corporate Debtor, which was repayable within 90 days with 15% interest per annum. The Corporate Debtor made partial payments but defaulted on the outstanding amount from April 1, 2018. Subsequently, two cheques issued by the Corporate Debtor

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## Facts

The Financial Creditor, Monotrone Leasing Private Limited, granted an inter-corporate loan of Rs. 25 lakhs to the Corporate Debtor, BD Motors Limited. This loan was extended for a period of 90 days and was repayable with an interest rate of 15% per annum. The amount was remitted to the Corporate Debtor through a fund transfer on June 14, 2017, which the Corporate Debtor acknowledged. The transaction was evidenced by a Money Receipt and corroborated by bank statements.

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## Issues and analysis

### Issue 1: Whether the Financial Creditor failed to establish a financial contract and necessary Board…

**Ratio:** An inter-corporate loan, evidenced by a money receipt and bank statements, and…

**Reasoning:** The court reasoned that the transaction was evidenced by a Money Receipt and bank…

**Interpretation:** The court interpreted 'financial debt' broadly to include transactions where…

**Application:** In this case, the Money Receipt explicitly stated that Rs. 25 lakhs was…

## Parties

- **Judges:** V. P. S…
- **Advocates:** For Appel…; Mr Abhijeet…; +10 more

## Timeline

- **June 14, 2017 — Loan Disbur…**: Monotrone Leasing Private Limited transferred Rs. 25 lakhs as an inter-corporate loan to…
- **June 14, 2017 — Partial Repaym…**: Corporate Debtor began making…

## 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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