# In the matter of Doshion Water Solution Pvt. Ltd. CP (IB)-1752-MB-2017

> NCLT judgment dated 2018-08-31. Citation: TCN-2018-NCLT-00842. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 31 Aug 2018
- **Citation:** TCN-2018-NCLT-00842
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/doshion-water-solution-pvt-ltd-cp-ib-1752-mb-2017-0dade005

## Summary

### Background

The case involves an application 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, filed by Bank of Baroda, the Financial Creditor, against M/s. Doshion Water Solution Private Limited, the Corporate Debtor. The Financial Creditor claims that the Corporate Debtor has defaulted on loan repayments, leading to the application for the commencement of the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor argued that a restructuring agreement was in place, but the Financial Creditor contends that the agreement was never implemented.

## Facts

Bank of Baroda, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Doshion Water Solution Private Limited, the Corporate Debtor, due to defaults in loan repayments. The total debt in default was stated as ₹133,69,60,093 as of September 30, 2017. The Corporate Debtor had availed various loan facilities from the Financial Creditor, including WCTL-I, WCTL-II, FITL, Cash Credit, and Overdraft facilities. The account of the Debtor was classified as Non-Performing Asset (NPA) on August 31, 2015. The Financial Creditor issued demand notices to the Debtor, but the Debtor failed to make the payments. The Corporate Debtor claimed that a restructuring agreement was in place with the Financial Creditor and other

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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:** A 'Financial Debt' is defined under Section 5(8) of the Insolvency and Bankruptcy Code,

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**Reasoning:** The NCLT considered the loan agreements and disbursement details provided by the

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

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**Application:** In this case, the NCLT found that the loan facilities availed by the Corporate

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Bank of B…
- **Respondents:** M/s. Doshion…

## Timeline

- **2014-01-16 — Restructuring…**: Financial Creditor along with other consortium bankers agreed to restructure the loan and…
- **2015-08-31 — Account Decla…**: The Account of the Debtor has turned…

## 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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