# In the matter of Logic Eastern (India) Private Limited & Ors. (IB)-623(PB)-2017

> NCLT judgment dated 2018-07-18. Citation: TCN-2018-NCLT-01119. The Technology Development Board, claiming to be a financial creditor, filed an application…

- **Court:** NCLT
- **Order date:** 18 Jul 2018
- **Citation:** TCN-2018-NCLT-01119
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/logic-eastern-india-private-limited-ors-ib-623pb-2017-8c55ef8b

## Summary

### Background

The Technology Development Board, claiming to be a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Logic Eastern (India) Private Limited, the corporate debtor. The applicant was established by the Government of India under the Technology Development Board Act, 1995, to assist and disburse loans to companies engaged in developing indigenous technologies. The applicant disbursed Rs. 4.12 crores to the respondent company in three installments. The outstanding and default amount due to the corporate debtor as of 30.11.2017 was Rs. 8,34,91,352/-.

## Facts

The Technology Development Board (TDB) disbursed Rs. 4.12 crores to M/s Logic Eastern (India) Private Limited in three installments under a loan agreement for a project titled 'Development and Commercialization of a Broadband Remote Server Named Edgile-4G'. The original loan agreement was executed on 29.03.2006, and a supplementary agreement was executed on 24.04.2008, reducing the loan amount and extending the project completion date. The corporate debtor defaulted on the repayment schedule, leading TDB to recall the loan on 03.08.2012. As of 30.11.2017, the outstanding amount was Rs. 8,34,91,352/-. The corporate debtor argued that the default dates were incorrect due to a revised payment schedule and that arbitration proceedings were pending. TDB contended that the

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

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

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**Reasoning:** The Tribunal found that the applicant had provided sufficient evidence of loan

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

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**Application:** The applicant, Technology Development Board, demonstrated that it was a

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** TECHNOLOGY…
- **Respondents:** M/s Logic Eastern…
- **Advocates:** B.B. Sa…; Lakshay S…; +4 more

## Timeline

- **2006-03-29 — Original Loan…**: Original Loan agreement executed between Technology Development Board and M/s Logic…
- **2008-04-24 — Supplementary…**: Supplementary agreement executed, reducing the loan amount and extending the project…

## 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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