# In the matter of Mahendra Investment Advisors Private  Ltd. CP (IB) No. 463-7-HDB-2020

> NCLT judgment dated 2021-04-28. Citation: TCN-2021-NCLT-02263. The case involves an application filed by Simplex Infrastructures Limited (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 28 Apr 2021
- **Citation:** TCN-2021-NCLT-02263
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mahendra-investment-advisors-private-ltd-cp-ib-no-463-7-hdb-2020-1a61cac5

## Summary

### Background

The case involves an application filed by Simplex Infrastructures Limited (Financial Creditor) against Mahendra Investment Advisors Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The Financial Creditor claimed a default on an Inter-Corporate Deposit (ICD) of Rs. 5,00,00,000/-. The Corporate Debtor argued that the ICD was provided as security for a contract and that it is a non-banking financial company (NBFC), thus not amenable to CIRP under the IBC. The Financial Creditor disputed the NBFC status and asserted that the Corporate Debtor acknowledged the debt through balance confirmations.

## Facts

Simplex Infrastructures Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Mahendra Investment Advisors Private Limited (Corporate Debtor) for a default on an Inter-Corporate Deposit (ICD) of Rs. 5,00,00,000/-. The ICD was placed on 04.07.2011. The Corporate Debtor argued that the ICD was provided as security for a contract dated 12.04.2010 and that it is a non-banking financial company (NBFC). The Financial Creditor contended that the Corporate Debtor acknowledged the debt through balance confirmations issued on 06.04.2012, 01.04.2013, 01.04.2014, 01.04.2015 and 01.04.2016. The Corporate Debtor defaulted on repayment of principal and interest on 01.11.2012, 01.10.2013, 26.09.2014 and 30.03.2016.

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## Issues and analysis

### Issue 1: Whether debt and …

**Ratio:** The existence of debt and default is a prerequisite for admitting a petition under

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**Reasoning:** The Adjudicating Authority analyzed the documents produced and found that the Financial

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**Interpretation:** The acknowledgment of debt by the Corporate Debtor through balance

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**Application:** The Corporate Debtor's acknowledgment of debt through balance confirmations,

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## Parties

- **Judges:** Bhaskara Pantula…; Veera Brahma Rao…
- **Respondents:** Mahendra Investmen…

## Timeline

- **2010-04-12 — Contract…**: Date of the contract for which the Corporate Debtor claimed the ICD was provided as…
- **2011-04-07 — ICD Plac…**: Petitioner placed Rs.5.00 crore as…

## 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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