# In the matter of Farmers Pulse Private Limited CP(IB) 83-7-HDB-2018

> NCLT judgment dated 2018-04-05. Citation: TCN-2018-NCLT-01593. The case involves a petition filed by M/s. Caspian Impact Investments Private Limited…

- **Court:** NCLT
- **Order date:** 5 Apr 2018
- **Citation:** TCN-2018-NCLT-01593
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/farmers-pulse-private-limited-cpib-83-7-hdb-2018-92dd34f4

## Summary

### Background

The case involves a petition filed by M/s. Caspian Impact Investments Private Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Farmers Pulse Private Limited (Corporate Debtor). The Financial Creditor initially incorporated as Sufala Finance Private Limited on 25.11.1991, later changed to Bellwether Microfinance Fund Private Limited on November 9, 2005, and subsequently to Caspian Impact Investments Private Limited on January 12, 2015. The Corporate Debtor was incorporated on January 10, 2014.

## Facts

M/s. Caspian Impact Investments Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Farmers Pulse Private Limited (Corporate Debtor). The Financial Creditor extended a working capital loan of Rs. 25,000,000 to the Corporate Debtor, as per a Credit Facility Agreement dated June 15, 2015. The Corporate Debtor confirmed compliance with the Facility Agreement and received the loan amount. However, the Corporate Debtor defaulted on the repayment of the principal and interest. The Financial Creditor initiated arbitration, which resulted in an award of Rs. 25,000,000 plus interest and arbitration costs. The Corporate Debtor failed to pay the

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Adjudicating Authority considered the pleadings and evidence presented by the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** In this case, the Financial Creditor had provided a loan to the Corporate

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## Parties

- **Judges:** Rajeswara Rao…
- **Appellants:** M/s.Caspian…
- **Respondents:** M/s. Farmers…

## Timeline

- **1991-11-25 — Incorporation of…**: M/s Caspian Impact Investments Private Limited was initially incorporated as Sufala…
- **2005-11-09 — Name Change of…**: The name of the Financial Creditor was changed to Bellwether Microfinance Fund 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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