# In the matter of Satish Kumar vs. Lion Buildcon Pvt. Ltd. and Anr.

> NCLAT judgment dated 2025-05-02. Citation: TCN-2025-NCLAT-00057. The appeal was filed by Satish Kumar, the suspended director of Lion Buildcon Pvt. Ltd.…

- **Court:** NCLAT
- **Order date:** 2 May 2025
- **Citation:** TCN-2025-NCLAT-00057
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/satish-kumar-vs-lion-buildcon-pvt-ltd-and-anr-2fbb4d4a

## Summary

### Background

The appeal was filed by Satish Kumar, the suspended director of Lion Buildcon Pvt. Ltd. (Corporate Debtor), under Section 61 of the Insolvency and Bankruptcy Code, 2016, challenging the order dated 03.07.2024 passed by the National Company Law Tribunal, New Delhi Bench (Court-II), which admitted Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The appellant contended that the Adjudicating Authority erroneously admitted CIRP against the corporate debtor solely as a recovery tool for Kaliber Associates Pvt. Ltd. (KAPL), which is in liquidation. The appellant argued that the liquidator of KAPL exceeded their statutory mandate by initiating CIRP against a third party and that the impugned order disregards the waterfall mechanism under section 53

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## Facts

Satish Kumar, the suspended director of M/S Lion Buildcon Pvt. Ltd., filed an appeal against the order dated 03.07.2024 passed by the National Company Law Tribunal (NCLT), New Delhi, which initiated Corporate Insolvency Resolution Process (CIRP) against Lion Buildcon. M/s Kaliber Associates Private Limited, through its liquidator Mr. Mohan Lal Jain, filed a Section 7 application against Lion Buildcon, claiming a default of Rs. 2.5 crores. Kaliber Associates is itself undergoing liquidation. The appellant argued that the liquidator of Kaliber Associates exceeded their statutory mandate by initiating CIRP against a third party for recovery of dues. The appellant also contended that the alleged debt was not a financial debt as there was no written agreement. The

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## Issues and analysis

### Issue 1: Whether the amount claimed by the …

**Ratio:** The existence of a financial debt does not necessarily require a written contract or

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**Reasoning:** The NCLAT considered the audited financial statements of the Corporate Debtor, which

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**Interpretation:** The definition of 'financial debt' under Section 5(8) of the IBC does not

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**Application:** In this case, the Appellant conceded that Rs. 2.5 Crores might have been

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Satish…
- **Respondents:** M/S Lion Buildcon…

## Timeline

- **2013-10-18 — Disbursement…**: Rs. 2,00,00,000 was disbursed by the…
- **2013-11-09 — Disbursement…**: Rs. 50,00,000 was disbursed by the…

## 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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