# In the matter of Leesa Lifesciences Private Limited CP(IB)No.744-7-HDB-2018

> NCLT judgment dated 2020-01-28. Citation: TCN-2020-NCLT-02150. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 28 Jan 2020
- **Citation:** TCN-2020-NCLT-02150
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/leesa-lifesciences-private-limited-cpibno744-7-hdb-2018-fac6bb12

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Dr. S.K. Srihari Raju (Financial Creditor) against Leesa Lifesciences Private Limited (Corporate Debtor). The Corporate Debtor was allotted a plot of land by TSIIC for setting up a manufacturing unit, for which it obtained financial facilities from the State Bank of India. The Corporate Debtor defaulted on its repayment obligations, leading the lender to classify the account as a non-performing asset and initiate recovery proceedings under the SARFAESI Act. Subsequently, a One Time Settlement (OTS) scheme was proposed, and the Financial Creditor paid a portion of the OTS amount on behalf of the Corporate Debtor. An Agreement of Sale was entered into between

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## Facts

1. Leesa Lifesciences Private Limited (Corporate Debtor) was allotted a plot of land (Plot No. P-2) by Andhra Pradesh Industrial Infrastructure Corporation Limited (now Telangana Industrial Infrastructure Corporation Limited-TSIIC) for setting up a manufacturing unit.
2. The Corporate Debtor obtained financial facilities of Rs. 21.50 crores from the State Bank of India for civil works and purchase of machinery.
3. The Corporate Debtor defaulted in repaying the facilities, leading the lender to classify the account as a non-performing asset and initiate recovery proceedings under the SARFAESI Act on 2012-11-30.
4. The lender filed an application u/s 19 of the RDDB Act with the Debts Recovery Tribunal at Hyderabad on 2014-07-23 for recovery of Rs. 23.37 crores.
5. A One Time

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## Issues and analysis

### Issue 1: Whether the amounts paid by the Petitioner (Financial Creditor) on behalf of the Corporate Debtor …

**Ratio:** A 'Financial Debt' is a 'debt' against consideration for the time value of money, and a

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**Reasoning:** The Adjudicating Authority relied on the Hon'ble Supreme Court's judgment in Pioneer

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**Interpretation:** The definition of 'Financial Debt' under the IBC is broad and includes

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**Application:** In this case, the amounts paid by the Financial Creditor to the lender on

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## Parties

- **Judges:** Shri. K. Anantha…; BINOD KUMAR…
- **Appellants:** Dr.S.K.Srihari…
- **Respondents:** Leesa Lifesciences…; M/s. Leesa…

## Timeline

- **2009-01-01 — Corporate Debtor…**: Corporate Debtor approached the State Bank of India for sanction of term loan and Working…
- **2009-11-13 — Registered dee…**: Registered deed of sale dated November 13, 2009, registered with the Sub-Registrar of…

## 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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