# In the matter of Hallow Infrastructure Pvt. Ltd. CP No. IB-212-(PB)-2018

> NCLT judgment dated 2018-09-17. Citation: TCN-2018-NCLT-00743. M/s Cadillac Info-Tech Private Limited, claiming to be a financial creditor, filed a petition…

- **Court:** NCLT
- **Order date:** 17 Sept 2018
- **Citation:** TCN-2018-NCLT-00743
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hallow-infrastructure-pvt-ltd-cp-no-ib-212-pb-2018-af5e3715

## Summary

### Background

M/s Cadillac Info-Tech Private Limited, claiming to be a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Hallow Infrastructure Private Limited, the corporate debtor. The petitioner claimed to have granted a short-term loan of Rs. 2,00,00,000/- to the corporate debtor, out of which Rs. 60,00,000/- was repaid, leaving an outstanding amount of Rs. 1,40,00,000/-. The petitioner alleged that the total amount in default, including interest, was Rs. 3,02,09,534/- as of the date of filing the petition. The corporate debtor opposed the admission of the petition, arguing that the petitioner was not a financial creditor and that the transaction was

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## Facts

M/s Cadillac Info-Tech Private Limited (the Petitioner) filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Hallow Infrastructure Private Limited (the Corporate Debtor). The Petitioner claimed to be a financial creditor, asserting that it had granted a short-term loan of Rs. 2,00,00,000/- to the Corporate Debtor for a period of one year. The loan was disbursed via RTGS on 20.07.2013. The Corporate Debtor repaid Rs. 60,00,000/- on 03.03.2014, leaving an outstanding amount of Rs. 1,40,00,000/-. The Petitioner claimed the total amount in default, including interest at 24% p.a., was Rs. 3,02,09,534/- as of the petition filing date. The Corporate Debtor opposed the

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## Issues and analysis

### Issue 1: Whether the petitioner, M/s Cadillac Info-Tech Private Limited, qualifies as a 'financial creditor' …

**Ratio:** A 'financial creditor' is defined under Section 5(7) of the IBC as a person to whom a

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**Reasoning:** The NCLT reasoned that the petitioner failed to produce any loan agreement or details of

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**Interpretation:** The interpretation of Section 5(7) hinges on the existence of a 'financial

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**Application:** In this case, the petitioner's failure to provide evidence of a formal loan

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** M/s Cadillac…
- **Respondents:** M/s Hallow…

## Timeline

- **2005-11-18 — Incorporation of…**: M/s Hallow Infrastructure…
- **2013-07-20 — Loan Disbur…**: The Petitioner disbursed a short-term loan of Rs. 2,00,00,000/- to the Corporate Debtor…

## 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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