# In the matter of LOG 9 MATERIALS SCIENTIFIC PRIVATE LIMITED

> Read the full IBC case summary for In the matter of LOG 9 MATERIALS SCIENTIFIC PRIVATE LIMITED. NCLT judgment dated 2025-09-15. Citation: TCN-2025-NCLT-01413.

- **Court:** NCLT
- **Order date:** 15 Sept 2025
- **Citation:** TCN-2025-NCLT-01413
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/log-9-materials-scientific-private-limited-a3d0090c

## Summary

### Background

The financial creditor filed two petitions under Section 7 of the IBC, 2016, to initiate CIRP against two corporate debtors (a holding company and its subsidiary) for defaults on loan agreements. The corporate debtors raised objections, citing ongoing settlement discussions, their financial solvency, and the existence of arbitration clauses in the agreements.

## Facts

Ghalla & Bhansali Securities Private Limited, the financial creditor, filed two petitions under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Log9 Materials Scientific Private Limited (Corporate Debtor No.1) and Log9 Mobility Private Limited (Corporate Debtor No.2). These petitions were filed due to alleged defaults on financial debts by both corporate debtors. The NCLT decided to hear and decide both petitions together due to common facts and overlapping issues, as one corporate debtor is a holding company and the other its wholly-owned subsidiary, both operating from the same address.

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## Issues and analysis

### Issue 1: Whether the existence of ongoing settlement discussions and One-Time Settlement (OTS) proposals…

**Ratio:** A financial creditor's statutory right under Section 7 of the IBC to initiate CIRP is not…

**Reasoning:** The NCLT noted that the OTS offers were grossly inadequate compared to the total admitted…

**Interpretation:** The court interpreted Section 7 of the IBC as providing an independent…

**Application:** Despite the corporate debtors' arguments about ongoing settlement talks and OTS…

## Parties

- **Judges:** Sunil Kumar…; Radhakrishna…
- **Advocates:** For the Petitioner…; Shivan…; +3 more

## Timeline

- **June 30, 2022 — Loan Agreement for CD…**: Petitioner disbursed an unsecured loan of Rs. 4,00,00,000/- to Log9 Mobility Private…
- **July 1, 2022 — Loan Disbursement to CD…**: The loan amount was directly transferred to Corporate Debtor No.2's Kotak Mahindra Bank…

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