# In the matter of Aakash Tiles Private Limited C.P. (IB) 3601-(MB)-2018

> NCLT judgment dated 2019-01-05. Citation: TCN-2019-NCLT-05321. Edelweiss Asset Reconstruction Company Ltd. filed a petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 5 Jan 2019
- **Citation:** TCN-2019-NCLT-05321
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aakash-tiles-private-limited-cp-ib-3601-mb-2018-28d41707

## Summary

### Background

Edelweiss Asset Reconstruction Company Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Aakash Tiles Private Limited, claiming a financial debt of ₹20,58,86,599. The Debtor Company remained absent despite being granted opportunities for a hearing. The Bench directed intimation of the hearing date through advertisement. The Petitioner presented an Affidavit of Service with evidence of the advertisement. The Respondent did not present a defense, leading to ex-parte proceedings.

## Facts

Edelweiss Asset Reconstruction Company Ltd. filed a petition against Aakash Tiles Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming a financial debt of ₹20,58,86,599. The debt originated from Oriental Bank of Commerce, which assigned it to Edelweiss ARC. The date of default was 31.12.2011, and the date of NPA was 31.03.2012. The assigned debt, including interest up to 13.08.2013, was ₹9,46,99,229. A suit was also filed with DRT, Ahmedabad, on 13.08.2013. Aakash Tiles Private Limited did not attend the hearing despite multiple opportunities, leading to ex-parte proceedings. The Corporate Debtor offered security including non-agricultural land, plant and machinery, current assets, bills receivable, and personal guarantees.

## Issues and analysis

### Issue 1: Whether the debt claimed by Edelweiss Asset Reconstruction Company Ltd. qualifies as a 'Financial …

**Ratio:** Section 5(8) of the Insolvency & Bankruptcy Code, 2016 defines 'Financial Debt'. The

…

**Reasoning:** The court examined the documents, including the assignment agreement between Oriental

…

**Interpretation:** The interpretation of 'Financial Debt' under Section 5(8) requires a careful

…

**Application:** Based on the documents presented, the court determined that the debt assigned

…

## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Aakash Tiles…

## Timeline

- **2011-12-31 — Date of D…**: Date of Default as per…
- **2012-03-31 — Date of…**: Date of account being classified…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/aakash-tiles-private-limited-cp-ib-3601-mb-2018-28d41707