# In the matter of Samyak Metals Private Limited Company Petition No. (IB)-705(ND)-2021

> NCLT judgment dated 14 Sept 2022. Citation: TCN-2022-NCLT-01071. Ugro Capital Limited, the financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 14 Sept 2022
- **Citation:** TCN-2022-NCLT-01071
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/samyak-metals-private-limited-company-petition-no-ib-705nd-2021-94699c63

## Summary

### Background

Ugro Capital Limited, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Samyak Metals Private Limited, the corporate debtor. The financial creditor alleged that the corporate debtor defaulted on a payment of Rs. 2,59,31,269/-. The application was filed in accordance with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

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## Facts

Ugro Capital Limited, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Samyak Metals Private Limited, the corporate debtor. The application sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to a default in payment amounting to Rs. 2,59,31,269/-. The application was filed in accordance with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

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## Issues and analysis

### Issue 1: Whether there exists a financial debt…

**Ratio:** A transaction involving the disbursement of funds against consideration for the time…

**Reasoning:** The Tribunal reasoned that the 'Supply Chain Facility' provided by Ugro Capital Limited…

**Interpretation:** The court interpreted 'financial debt' broadly to include transactions that…

**Application:** The 'Supply Chain Facility' availed by Samyak Metals Private Limited from Ugro…

## Parties

- **Judges:** DHARMINDER…; L. N. G…

## Timeline

- **February 10, 1990 — Ugro Capital Limited…**: Ugro Capital Limited, the applicant, was registered under the provisions of the erstwhile…
- **February 20, 2019 — Master Service…**: A Master Service Agreement was executed between Ugro Capital Limited and Kiran Udyog Pvt.…

## 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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