# In the matter of Pancham Studios Pvt. Ltd. vs. Konark Aquatics & Exports Pvt. Ltd.

> NCLAT judgment dated 2025-07-15. Citation: TCN-2025-NCLAT-00306. The appeal was filed against the order dated 29.11.2023 passed by the NCLT, Cuttack Bench,…

- **Court:** NCLAT
- **Order date:** 15 Jul 2025
- **Citation:** TCN-2025-NCLAT-00306
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pancham-studios-pvt-ltd-vs-konark-aquatics-exports-pvt-ltd-4c7c465d

## Summary

### Background

The appeal was filed against the order dated 29.11.2023 passed by the NCLT, Cuttack Bench, which dismissed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Konark Aquatics and Exports Private Limited (Corporate Debtor) for the resolution of an interest-free loan of Rs. 4,43,50,000/-.

## Facts

Pancham Studios Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Konark Aquatics & Exports Pvt. Ltd.

The NCLT, Cuttack Bench, dismissed the application.

The Appellant claimed to have disbursed an interest-free loan of Rs. 4,43,50,000/- to the Corporate Debtor.

The Respondent contended that the amount was related to a family property transaction and not a financial debt.

The amount was reflected as an unsecured loan in the Corporate Debtor's financial statements.

The Corporate Debtor allegedly defaulted in repayment despite demand notices.

The Tribunal held that the loan was given in violation of Section 186 of the Companies Act.

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor owed a financial …

**Ratio:** The Appellate Tribunal held that the Tribunal had committed a patent error in dismissing

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**Reasoning:** The Tribunal noted that the debt and default had been proven, and the amount was

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**Interpretation:** The existence of a formal agreement or financial contract is not necessary for

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**Application:** The Appellate Tribunal allowed the

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Pancham Studios…
- **Respondents:** Konark Aquatics &…
- **Advocates:** Kumarjit Ba…; Sanchari Chakrabor…; +8 more

## Timeline

- **2023-11-29 — Order by NCLT, Cuttack…**: The NCLT, Cuttack Bench, passed an order dismissing the application under Section 7 of…
- **2019-08-02 — Demand No…**: Demand notices were served…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 186 — Punishment for false information, concealment,…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-186)

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