# In the matter of ARK Landscapes LLP CP (I&B) 586-NCLT-MB-MAH-2018

> NCLT judgment dated 2019-02-11. Citation: TCN-2019-NCLT-04908. Good Value Financial Services Private Limited filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 11 Feb 2019
- **Citation:** TCN-2019-NCLT-04908
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ark-landscapes-llp-cp-ib-586-nclt-mb-mah-2018-53c3a26c

## Summary

### Background

Good Value Financial Services Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against ARK Landscapes LLP, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The petition was based on the alleged default in repayment of ₹17,00,000/- against principal and ₹15,45,255/- against interest as of 31.03.2018, with the date of default mentioned as 12.08.2017. The petitioner claimed to have advanced a loan of ₹17,00,000/- on 30.07.2014, with repayment due within three months at 18% interest, and a default interest of 24% p.a., leading to a total claim of ₹34,34,242/- as on 02.08.2017.

## Facts

Good Value Financial Services Private Limited (the Petitioner) claimed to have advanced a loan of ₹17,00,000/- to ARK Landscapes LLP (the Corporate Debtor) on 30.07.2014. The Petitioner stated that the repayment was due within three months at 18% interest, with a default interest of 24% p.a. The Petitioner filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor based on the alleged default in repayment. As of 31.03.2018, the Corporate Debtor allegedly defaulted in making repayment of ₹17,00,000/- against principal and ₹15,45,255/- against interest. The date of default in repayment of the debt by the Corporate Debtor is mentioned as 12.08.2017. The

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## Issues and analysis

### Issue 1: Whether the amount transferred by the Petitioner to the Corporate Debtor constitutes a 'financial …

**Ratio:** For a debt to be considered a 'financial debt' under Section 5(8) of the I&B Code, it

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**Reasoning:** The NCLT reasoned that the Petitioner failed to provide sufficient evidence to establish

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**Interpretation:** The interpretation of 'financial debt' under Section 5(8) of the I&B Code

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**Application:** In this case, the Petitioner's failure to provide evidence of 'time value of

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## Parties

- **Judges:** V. P. S…; Ravikumar…; +1 more
- **Appellants:** Good Value…
- **Respondents:** ARK Landsca…

## Timeline

- **2014-07-30 — Loan Adv…**: Petitioner advanced a loan of…
- **2017-08-02 — Notice S…**: Petitioner sent a notice to the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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