# In the matter of Rita Kedia vs. Ashika Global Securities Private Limited & Ors.

> NCLAT judgment dated 2024-11-29. Citation: TCN-2024-NCLAT-00053. The appeal was filed by the Suspended Director of Evyavan Merchantile Private Limited against…

- **Court:** NCLAT
- **Order date:** 29 Nov 2024
- **Citation:** TCN-2024-NCLAT-00053
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rita-kedia-vs-ashika-global-securities-private-limited-ors-be623d49

## Summary

### Background

The appeal was filed by the Suspended Director of Evyavan Merchantile Private Limited against the order dated 02.11.2023 passed by the National Company Law Tribunal, Mumbai Bench, Court-V, whereby the petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Ashika Global Securities Private Limited (Financial Creditor), was allowed, and Evyavan Merchantile Private Limited (Corporate Debtor) was admitted into Corporate Insolvency Resolution Process (CIRP). The Financial Creditor is a Non-Banking Financial Company engaged in financing and investment activities. The Corporate Debtor was disbursed Rs. 7 crores between 18.08.2016 and 31.03.2017, and repaid Rs. 1.90 crore between 23.08.2016 and 04.07.2018. The Corporate Debtor also deducted TDS,

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## Facts

Ashika Global Securities Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Evyavan Merchantile Private Limited (Corporate Debtor). The Financial Creditor, a Non-Banking Financial Company, disbursed Rs. 7 crores to the Corporate Debtor between 18.08.2016 and 31.03.2017. The Corporate Debtor repaid Rs. 1.90 crore between 23.08.2016 and 04.07.2018. The Corporate Debtor also deducted TDS, which was reflected in Form 26AS. The Appellant, the Suspended Director of the Corporate Debtor, argued that there was no loan agreement and that the application was time-barred. The total debt and interest payable as of 31.03.2022 amounted to Rs. 7,81,73,014/-. The Corporate Debtor acknowledged the debt in the

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** As per provisions of Section 5(8) of IBC, 2016, financial debt means a debt along with

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**Reasoning:** The court considered the facts of the case, including the disbursement of money to the

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** In this case, the Corporate Debtor received Rs. 7 crores from the Financial

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## Parties

- **Judges:** Yogesh K…; Ajai Das Me…
- **Appellants:** Rita K…
- **Respondents:** Evyavan Merchantil…; Ashika Global…

## Timeline

- **2016-08-18 — Disbursement…**: Rs. 1,00,00,000/- disbursed…
- **2016-08-19 — Disbursement…**: Rs. 1,00,00,000/- disbursed…

## 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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