# In the matter of Ocean Deity Investment Holdings Ltd. PCC Vs. Suraksha Assest Reconstruction Ltd.  & Ors., Company Appeal (AT)(Insolvency)No.795 of 2021(IA No.1332 of 2022)

> NCLAT judgment dated 2022-09-08. Citation: TCN-2022-NCLAT-00227. The case involves appeals against the admission of a Section 7 application under the…

- **Court:** NCLAT
- **Order date:** 8 Sept 2022
- **Citation:** TCN-2022-NCLAT-00227
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ocean-deity-investment-holdings-ltd-pcc-vs-suraksha-assest-reconstruction-ltd-or-18848ace

## Summary

### Background

The case involves appeals against the admission of a Section 7 application under the Insolvency and Bankruptcy Code (IBC) by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) against Mack Star Marketing Private Limited. The appeals challenge the order admitting the application filed by Suraksha Asset Reconstruction Limited, the assignee of loans originally given by Yes Bank. The core issue revolves around allegations of fraudulent transactions and collusion between Yes Bank, HDIL (Housing Development Infrastructure Limited), and Mack Star, where loans were allegedly sanctioned and disbursed with an ulterior motive, primarily to evergreen the stressed loans of HDIL. The appellants argue that the loans were never used for their intended purpose and

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## Facts

The case involves a complex web of loan transactions and allegations of fraud involving Yes Bank, HDIL (Housing Development Infrastructure Limited), Mack Star Marketing Private Limited, and Suraksha Asset Reconstruction Limited. Key facts include:

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## Issues and analysis

### Issue 1: Whether the loans disbursed to Mack Star Marketing Private Limited qualify as a 'Financial Debt' …

**Ratio:** The essential requisites of a 'Financial Debt' under Section 5(8) of the IBC are that

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**Reasoning:** The tribunal reasoned that the loans disbursed to Mack Star were not utilized for the

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**Interpretation:** The term 'Financial Debt' under Section 5(8) of the IBC requires a genuine

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**Application:** In this case, the tribunal found that the loans disbursed to Mack Star were not

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## Parties

- **Judges:** Anant Bijay…; Shreesha…
- **Appellants:** Ocean Deity…
- **Respondents:** MACK STAR…; Suraksha Asset…
- **Advocates:** Krishnendu…; Vividh T…; +10 more

## Timeline

- **2012-11-12 — Disbursement of Term…**: Term Loan III of…
- **2014-03-29 — Disbursement of Term…**: First tranche of Term Loan IV of…

## 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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