# In the matter of SUMARROW IMPEX LLP

> NCLT judgment dated 2025-10-10. Citation: TCN-2025-NCLT-01457. Drip Capital Inc. filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 10 Oct 2025
- **Citation:** TCN-2025-NCLT-01457
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/sumarrow-impex-llp-e0c25327

## Summary

### Background

Drip Capital Inc. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process against Sumarrow Impex LLP, claiming a default of Rs.1,76,62,185/- (USD 211,346) with a default date of 10.01.2024. The Financial Creditor and Corporate Debtor entered into a Receivables Purchase Agreement dated 13.06.2023.

## Facts

Drip Capital Inc. filed an application under Section 7 of the IBC against Sumarrow Impex LLP.

The claimed default amount is Rs.1,76,62,185/- (USD 211,346), with a default date of 10.01.2024.

A Receivables Purchase Agreement was entered into between the parties on 13.06.2023.

The Financial Creditor disbursed USD 256,932 to the Corporate Debtor between 23.06.2023 and 30.08.2023.

The Corporate Debtor argued that the Petitioner is not a 'Financial Creditor' due to lack of RBI approval.

The Corporate Debtor contended that the Receivables Purchase Agreement is governed by Delaware law and contains an arbitration clause.

The Financial Creditor argued that the debt is a financial debt under Section 5(8)(e) of the IBC.

…

## Issues and analysis

### Issue 1: Whether Drip Capital Inc. is a 'Financial Creditor' under the IBC, considering the absence of RBI …

**Ratio:** The definition of financial debt under Section 5(8)(e) of the Code expressly includes

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**Reasoning:** The disbursements made under the Agreement, being in the nature of receivables financing

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**Interpretation:** The absence of RBI approval or license may have regulatory implications but

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**Application:** The Tribunal held that the contention of the Corporate Debtor that the

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Drip Capit…
- **Respondents:** Sumarrow Im…
- **Other parties:** Primus Insolvency…
- **Advocates:** Vinay Bai…; Kunal Vai…

## Timeline

- **2023-06-13 — Receivables Purchase…**: Receivables Purchase Agreement dated 13.06.2023 was entered into between the Financial…
- **2024-01-10 — Date of D…**: The date of default is…

## 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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