# In the matter of Maharashtra Aluminium & Alloys Pvt. Ltd. CP (IB)-1580-MB-2017

> NCLT judgment dated 2018-10-23. Citation: TCN-2018-NCLT-00516. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 23 Oct 2018
- **Citation:** TCN-2018-NCLT-00516
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maharashtra-aluminium-alloys-pvt-ltd-cp-ib-1580-mb-2017-66cc9603

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by three financial creditors against M/s. Maharashtra Aluminium & Alloys Private Limited, the corporate debtor. The financial creditors claim a total default of ₹61,06,586, including principal and interest, as of April 1, 2017. The corporate debtor disputes the debt, citing a pending civil suit and alleging that the amounts were investments, not loans. The financial creditors argue that the debtor acknowledged the debt in its annual report and paid TDS on interest, indicating a financial debt.

## Facts

M/s. Corporate Finance & Investment Services India Private Limited (1st Financial Creditor) disbursed an unsecured loan of ₹12,00,000 during the Financial Year 2013-14, which the Debtor failed to repay.
M/s. Corporate Finance & Legal Services Private Limited (2nd Financial Creditor) disbursed an unsecured loan of ₹10,00,000 during the Financial Years 2013-14 to 2014-15, which the Debtor has not repaid.
M/s. Corporate Finance & Taxation Services Private Limited (3rd Financial Creditor) disbursed an unsecured loan of ₹23,00,000 during the Financial Years 2011-12 to 2013-14, of which the Debtor repaid ₹12,12,856, including ₹12,856 towards interest, as of August 31, 2016.
The Financial Creditors issued legal notices dated May 23, 2017, to the Debtor, demanding

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## Issues and analysis

### Issue 1: Whether the amount claimed by the Financial …

**Ratio:** The presence of TDS (Tax Deducted at Source) certificates under Section 194A of the

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**Reasoning:** The NCLT examined the TDS certificates and noted that the debtor had deducted TDS under

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**Interpretation:** Section 194A of the Income Tax Act, 1961, specifically deals with the deduction

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**Application:** The NCLT applied the ratio by observing that the debtor had deducted TDS under

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** M/s. Corporate…
- **Respondents:** M/s. Maharashtra…

## Timeline

- **2017-11-10 — Filing of App…**: Financial Creditors filed Form No. 1 under Rule 4 of the Insolvency and Bankruptcy…
- **2018-10-05 — Hearing…**: The case was heard on…

## 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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