# 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-01855. 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-01855
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mansadevi-bakers-pvt-ltd-cpib-no-30-7-hdb-2019-d2dc7ef1

## 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 of the Corporate Debtor are related to the financial creditors and hold 50% of the shares. The Corporate Debtor failed to repay the loan, 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 Insolvency and Bankruptcy Code, 2016. The Financial Creditors are individual businessmen related to the directors of the Corporate Debtor. The Corporate Debtor received unsecured loans amounting to Rs. 66,75,000 from the Financial Creditors. The Corporate Debtor's annual financial statements reflected this amount as an unsecured loan. The Corporate Debtor failed to repay the loan, which, including principal and interest, amounted to Rs. 1,47,81,477 as of 10.12.2018. The Corporate Debtor had also entered into a subordination agreement with Canara Bank, which the Corporate Debtor claimed prevented the Financial

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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 loan was provided as an unsecured loan without any interest

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## Parties

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

## Timeline

- **2016-06-10 — Notice s…**: Notice served to Managing Director on…
- **2017-08-10 — Notice s…**: Notice served to Managing Director 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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