# In the matter of ACTIF Corporation Limited C.P. No. (IB) 272-7-NCLT-AHM-2019

> NCLT judgment dated 2019-11-26. Citation: TCN-2019-NCLT-00438. The case involves an application filed by multiple financial creditors (Clematis Trading…

- **Court:** NCLT
- **Order date:** 26 Nov 2019
- **Citation:** TCN-2019-NCLT-00438
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/actif-corporation-limited-cp-no-ib-272-7-nclt-ahm-2019-29674edb

## Summary

### Background

The case involves an application filed by multiple financial creditors (Clematis Trading Company Private Limited, Alpha (India) Properties Ltd., Glean Trading Private Limited, and Kanha Textile Private Limited) under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Actif Corporation Limited. The financial creditors claimed that Actif Corporation Limited had defaulted on unsecured loans.

## Facts

Clematis Trading Co Pvt Ltd & Ors, Alpha (India) Properties Limited, Glean Trading Private Limited, and Kanha Textile Private Limited (the 'Financial Creditors') filed a joint petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Actif Corporation Ltd (the 'Corporate Debtor'). The Financial Creditors claimed that the Corporate Debtor had defaulted on unsecured loans. The total amount claimed by the Financial Creditors was Rs. 20,04,37,016/-, inclusive of interest. The Corporate Debtor acknowledged its liability by filing an additional affidavit. The loans were sanctioned on different dates, ranging from 2011 to 2014, with varying interest rates. The dates of default also varied. The Financial Creditors submitted documents, including board

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## Issues and analysis

### Issue 1: Whether the petitioners are financial creditors within the meaning of the Insolvency and Bankruptcy …

**Ratio:** A financial creditor is defined under the Insolvency and Bankruptcy Code, 2016, as a

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**Reasoning:** The court examined the documents submitted by the petitioners, including loan agreements

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**Interpretation:** The court interpreted the definition of 'financial creditor' under the

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**Application:** The court applied the definition of 'financial creditor' to the facts of the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Clematis Trading…
- **Respondents:** Actif Corporation…

## Timeline

- **2010-03-23 — Incorporation of…**: Applicant No. 1, a registered private…
- **2006-03-31 — Incorporation of…**: Applicant No. 2, a registered private…

## 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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