# In the matter of Akhilesh Developers Private Limited C.P. (IB)-3160-(MB)-2018

> NCLT judgment dated 2019-02-19. Citation: TCN-2019-NCLT-04770. Indiabulls Commercial Credit Limited (ICCL) filed a petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 19 Feb 2019
- **Citation:** TCN-2019-NCLT-04770
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akhilesh-developers-private-limited-cp-ib-3160-mb-2018-9d272073

## Summary

### Background

Indiabulls Commercial Credit Limited (ICCL) filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Akhilesh Developers Private Limited (ADPL). The petition was based on a default on a loan of ₹50 Crores granted to ADPL under a Loan Agreement dated 30.09.2013, read with an Addendum Agreement dated 01.10.2013. The loan was fully disbursed on 30.09.2013. The Hon'ble High Court of Delhi had previously sanctioned a scheme of arrangement between Indiabulls Finance Company Private Limited (IFCPL) and ICCL, wherein ICCL stepped into the shoes of IFCPL.

## Facts

Indiabulls Commercial Credit Limited (ICCL) sanctioned a loan of ₹50 Crores to Akhilesh Developers Private Limited (ADPL) on 30.09.2013. The loan agreement was supplemented by an addendum agreement dated 01.10.2013. ADPL defaulted on its repayment obligations, with the last payment made on 31.03.2016, amounting to ₹4,33,63,542/-. ICCL issued a recall notice on 24.10.2017 and a notice under Section 13(2) of the SARFAESI Act on 19.12.2017. As of 17.08.2018, the total outstanding amount, including interest and pending TDS, was ₹77,16,76,257/-. The loan was secured by a mortgage over a residential premise, a personal guarantee by Mr. Vikas S. Kasliwal, and pledged shares and debentures. ADPL's account was classified as a Non-Performing Asset (NPA) on 30.09.2017. ICCL filed

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## Issues and analysis

### Issue 1: Whether the debt in question qualifies as a 'Financial Debt' under Section 5(8) of the Insolvency …

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

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**Reasoning:** The court reasoned that the loan disbursed by ICCL to ADPL was for the time value of

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**Interpretation:** The interpretation of 'Financial Debt' under Section 5(8) is broad and

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**Application:** In this case, the loan disbursed by ICCL to ADPL, along with the agreed-upon

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Indiabulls…
- **Respondents:** Akhilesh Developer…

## Timeline

- **2013-09-30 — Loan Agreeme…**: Loan Agreement dated 30.09.2013 was executed between Indiabulls Commercial Credit Limited…
- **2013-10-01 — Addendum Agree…**: Addendum Agreement dated 01.10.2013 was…

## 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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