# In the matter of Medybiz Private Limited

> NCLT judgment dated 8 May 2024. Citation: TCN-2024-NCLT-01396. Reliance Commercial Finance Limited (Financial Creditor) filed a petition under Section 7 of…

- **Court:** NCLT
- **Order date:** 8 May 2024
- **Citation:** TCN-2024-NCLT-01396
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/medybiz-private-limited-d6c8df4a

## Summary

### Background

Reliance Commercial Finance Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Medybiz Private Limited (Corporate Debtor) for a total default of Rs. 822,25,17,739/-. This amount includes a principal of Rs. 323,02,25,333/-, interest of Rs. 196,20,12,766/-, and penal interest of Rs. 303,02,79,640/-, all calculated as of September 30, 2023. The Financial Creditor, formerly known as Reliance Gilts Limited, was incorporated on August 17, 2000, and registered as a Non-Banking Financial Institution with the Reserve Bank of India on May 21, 2009.

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## Facts

Reliance Commercial Finance Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Medybiz Private Limited, the Corporate Debtor. The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to a default totaling Rs. 822,25,17,739/-. This amount included a principal of Rs. 323,02,25,333/-, interest of Rs. 196,20,12,766/-, and penal interest of Rs. 303,02,79,640/-, all calculated as of September 30, 2023. The Financial Creditor was formerly known as Reliance Gilts Limited and was registered as a Non-Banking Financial Institution with the Reserve Bank of India.

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## Issues and analysis

### Issue 1: Whether there is a financial debt and…

**Ratio:** A financial debt and default are established when the Corporate Debtor has availed loan…

**Reasoning:** The court reasoned that the Corporate Debtor had availed various loan facilities from the…

**Interpretation:** The court interpreted 'financial debt' and 'default' broadly to include the…

**Application:** Given the detailed breakdown of loan accounts, disbursed amounts, and dates of…

## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Advocates:** For the Financial…; Ld. Counsel. For…; +2 more

## Timeline

- **August 17, 2000 — Incorporation of…**: Reliance Gilts Limited (now Reliance Commercial Finance Limited) was incorporated with…
- **May 21, 2009 — NBFI Regist…**: The Financial Creditor was registered as a Non-Banking Financial Institution with the…

## 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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