The appeal was filed by Sach Marketing Pvt. Ltd. against the order dated 18.01.2021 passed by the National Company Law Tribunal (NCLT), Jaipur Bench, which dismissed I.A. No. 135/JPR/2019 in C.P. No. (IB)-86/ND/2018. The appellant challenged the decision of the Resolution Professional (RP) of Mount Shivalik Industries Ltd. (Corporate Debtor) classifying their claim as 'Operational Debt' instead of 'Financial Debt'. The appellant argued that a security deposit made with the Corporate Debtor should be considered a financial debt under Section 5(8)(f) of the Insolvency and Bankruptcy Code (IBC).
Sach Marketing Pvt. Ltd. entered into an agreement with Mount Shivalik Industries Ltd. (Corporate Debtor) on 01.04.2014, where Sach Marketing was appointed as a sales promoter for beer for 12 months. As per the agreement, Sach Marketing was required to deposit a minimum security of Rs. 53,15,000/- with the Corporate Debtor, which would carry interest at 21% per annum. A subsequent agreement on 01.04.2015 retained the security deposit requirement. Sach Marketing provided Rs. 61,00,850/- in 2014, and Rs. 25,00,000/- was adjusted from funds provided earlier. The Corporate Debtor unilaterally adjusted the amount from the security balance to a Security Deposit/Loan Account in 2015-16. On 31.03.2016, the Corporate Debtor admitted an interest liability of Rs. 18,06,000/- but
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Mount Shivalik Industries Limited appointed…
An agreement was executed between Sach…
The appeal was filed by Sach Marketing Pvt. Ltd. against the order dated 18.01.2021 passed by the National Company Law Tribunal (NCLT), Jaipur Bench, which dismissed I.A. No. 135/JPR/2019 in C.P. No. (IB)-86/ND/2018. The appellant challenged the decision of the Resolution Professional (RP) of Mount Shivalik Industries Ltd. (Corporate Debtor) classifying their claim as 'Operational Debt' instead of 'Financial Debt'. The appellant argued that a security deposit made with the Corporate Debtor should be considered a financial debt under Section 5(8)(f) of the Insolvency and Bankruptcy Code (IBC).
Sach Marketing Pvt. Ltd. entered into an agreement with Mount Shivalik Industries Ltd. (Corporate Debtor) on 01.04.2014, where Sach Marketing was appointed as a sales promoter for beer for 12 months. As per the agreement, Sach Marketing was required to deposit a minimum security of Rs. 53,15,000/- with the Corporate Debtor, which would carry interest at 21% per annum. A subsequent agreement on 01.04.2015 retained the security deposit requirement. Sach Marketing provided Rs. 61,00,850/- in 2014, and Rs. 25,00,000/- was adjusted from funds provided earlier. The Corporate Debtor unilaterally adjusted the amount from the security balance to a Security Deposit/Loan Account in 2015-16. On 31.03.2016, the Corporate Debtor admitted an interest liability of Rs. 18,06,000/- but
…Mount Shivalik Industries Limited appointed…
An agreement was executed between Sach…