# In the Matter Of Pradeep Kumar Sekar Vs. Solar Semiconductor Energy Systems (India) Private Limited and Anr. CA (AT) (CH) (Ins) No. 02-21

> NCLAT judgment dated 2021-04-19. Citation: TCN-2021-NCLAT-00274. The appeal was filed by Pradeep Kumar Sekar, the suspended director of Solar Semiconductor…

- **Court:** NCLAT
- **Order date:** 19 Apr 2021
- **Citation:** TCN-2021-NCLAT-00274
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pradeep-kumar-sekar-vs-solar-semiconductor-energy-systems-045f8f77

## Summary

### Background

The appeal was filed by Pradeep Kumar Sekar, the suspended director of Solar Semiconductor Energy Systems (India) Private Limited, against the order dated 19.03.2020 passed by the Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench) in CP (IB) No. 662/07/HDB/2019. The Adjudicating Authority admitted Section 7 application filed by Orix Leasing and Financial Services India Limited, the second respondent/petitioner/financial creditor, under the Insolvency and Bankruptcy Code, 2016.

## Facts

Pradeep Kumar Sekar, the suspended director of Solar Semiconductor Energy Systems (India) Private Limited, filed an appeal against the order of the Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench) which admitted a Section 7 application filed by Orix Leasing and Financial Services India Limited. The dispute arose from a 'Lease Agreement' dated 03.04.2017, where Orix Leasing leased out 'Furnitures and Fixtures' to Solar Semiconductor. Orix Leasing claimed that Solar Semiconductor defaulted on lease rentals, leading to a financial debt. Solar Semiconductor argued that the lease agreement was not a financial lease and that Orix Leasing was not a financial creditor. The Adjudicating Authority admitted the application, leading to the appeal. The

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## Issues and analysis

### Issue 1: Whether the 'Lease Agreement' dated 03.04.2017 constitutes a 'Financial Lease' under Section …

**Ratio:** A 'Financial Debt' requires a disbursal against the consideration for the time value of

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**Reasoning:** The Tribunal considered the meaning of 'Time Value' as the price associated with the

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**Interpretation:** The definition of 'financial debt' as contained in Section 5(8) contains the

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**Application:** The Tribunal concluded that the disbursal of amounts to the manufacturer

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## Parties

- **Judges:** Venugop…; V. P. S…
- **Appellants:** Pradeep Kumar…
- **Respondents:** Solar Semiconducto…
- **Advocates:** V. Ramakr…; Vijayaragha…; +2 more

## Timeline

- **2020-03-19 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench) passed an…
- **2017-04-03 — Lease Agr…**: A 'Lease Agreement' was entered into between Solar Semiconductor Energy Systems (India)…

## 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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