Wild Dreams Trading Company Pvt. Ltd. (Financial Creditor) extended Inter Corporate Deposits (ICDs) totaling Rs.2,32,00,000/- to Ascendancy Financial Services Pvt. Ltd. (Corporate Debtor) with an agreed interest rate. Despite partial principal repayments, the Corporate Debtor defaulted on interest payments and remaining principal. The total outstanding amount, including interest, was Rs.1,07,08,010/-. The Financial Creditor initiated CIRP under Section 7 of the IBC after the Corporate Debtor acknowledged the debt but failed to repay. The Adjudicating Authority (NCLT, Chandigarh Bench-I) dismissed the application on 03.02.2026, ruling that interest could not be added based solely on TDS deductions, thus concluding the debt fell below the statutory threshold.
Wild Dreams Trading Company Pvt. Ltd. (Appellant) extended financial assistance to Ascendancy Financial Services Pvt. Ltd. (Respondent) in the form of eleven Inter Corporate Deposits (ICDs) totaling Rs.2,32,00,000/- between 22.07.2016 and 18.07.2024.
The parties mutually agreed that the Respondent would pay interest, initially at 11.50% per annum for ICDs advanced during FY 2016-17 and 2017-18, later revised to 8% per annum.
The Respondent made partial repayments towards the principal amounts of the First to Eighth ICDs and a partial payment of Rs.1,00,000/- towards the Ninth ICD.
The Respondent failed to pay the accrued interest on any ICDs and the remaining principal amount under the Ninth ICD, as well as the entire principal amounts under the Tenth and Eleventh ICDs.
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Appellant began extending financial assistance…
The period during which…
Wild Dreams Trading Company Pvt. Ltd. (Financial Creditor) extended Inter Corporate Deposits (ICDs) totaling Rs.2,32,00,000/- to Ascendancy Financial Services Pvt. Ltd. (Corporate Debtor) with an agreed interest rate. Despite partial principal repayments, the Corporate Debtor defaulted on interest payments and remaining principal. The total outstanding amount, including interest, was Rs.1,07,08,010/-. The Financial Creditor initiated CIRP under Section 7 of the IBC after the Corporate Debtor acknowledged the debt but failed to repay. The Adjudicating Authority (NCLT, Chandigarh Bench-I) dismissed the application on 03.02.2026, ruling that interest could not be added based solely on TDS deductions, thus concluding the debt fell below the statutory threshold.
Wild Dreams Trading Company Pvt. Ltd. (Appellant) extended financial assistance to Ascendancy Financial Services Pvt. Ltd. (Respondent) in the form of eleven Inter Corporate Deposits (ICDs) totaling Rs.2,32,00,000/- between 22.07.2016 and 18.07.2024.
The parties mutually agreed that the Respondent would pay interest, initially at 11.50% per annum for ICDs advanced during FY 2016-17 and 2017-18, later revised to 8% per annum.
The Respondent made partial repayments towards the principal amounts of the First to Eighth ICDs and a partial payment of Rs.1,00,000/- towards the Ninth ICD.
The Respondent failed to pay the accrued interest on any ICDs and the remaining principal amount under the Ninth ICD, as well as the entire principal amounts under the Tenth and Eleventh ICDs.
…Appellant began extending financial assistance…
The period during which…