# In the matter of Mansadevi Bakers Pvt. Ltd. CP(IB) No. 30-7-HDB-2019

> NCLT judgment dated 2019-08-22. Citation: TCN-2019-NCLT-01842. The case involves a company petition filed by Abhishek Agarwal and others (Financial Creditors)…

- **Court:** NCLT
- **Order date:** 22 Aug 2019
- **Citation:** TCN-2019-NCLT-01842
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mansadevi-bakers-pvt-ltd-cpib-no-30-7-hdb-2019-b0916304

## Summary

### Background

The case involves a company petition filed by Abhishek Agarwal and others (Financial Creditors) against Manasadevi Bakers Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditors, who are individual businessmen, provided unsecured loans to the corporate debtor. Directors and 50% shareholders of the corporate debtor are related to the financial creditors. The corporate debtor acknowledged the loan in its financial statements but failed to repay it, leading to the petition for initiating the Corporate Insolvency Resolution Process (CIRP).

## Facts

Abhishek Agarwal and others (Financial Creditors) filed a company petition against Manasadevi Bakers Private Limited (Corporate Debtor) under Section 7 of the IBC. The Financial Creditors are individual businessmen and related to the directors/shareholders of the Corporate Debtor. They provided an unsecured loan of Rs. 66,75,000/- to the Corporate Debtor, which was acknowledged in the Corporate Debtor's financial statements. However, the Corporate Debtor failed to repay the loan, leading to the petition. The Corporate Debtor argued that the loan was interest-free and not due for payment, citing a subordination agreement with Canara Bank. The petitioners claimed they were not signatories to the subordination agreement and that the Corporate Debtor had violated it. The

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## Issues and analysis

### Issue 1: Whether the petitioners would fall under the …

**Ratio:** A financial creditor is defined under the IBC as a person to whom a financial debt is

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**Reasoning:** The Adjudicating Authority reasoned that the unsecured loan provided by the petitioners

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**Interpretation:** The interpretation of 'financial debt' under Section 5(8) of the IBC requires

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**Application:** In this case, the unsecured loan was provided without interest and without a

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Abhishek A…
- **Respondents:** Manasadevi Bakers…; Mansadevi Bakers…

## Timeline

- **2007-04-29 — MOU Ente…**: An MOU was entered into…
- **2012-02-08 — Agreement E…**: Another agreement was entered…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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