# In the matter of Skipper Textiles Pvt. Ltd. CP(IB)No.1702-KB-2018

> NCLT judgment dated 2019-06-28. Citation: TCN-2019-NCLT-02746. The case pertains to an application filed by Esspee Sarees Pvt. Ltd., the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 28 Jun 2019
- **Citation:** TCN-2019-NCLT-02746
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/skipper-textiles-pvt-ltd-cpibno1702-kb-2018-938584dc

## Summary

### Background

The case pertains to an application filed by Esspee Sarees Pvt. Ltd., the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Skipper Textiles Pvt. Ltd., the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor defaulted in paying a financial debt of Rs. 1,02,87,671/-. The Corporate Debtor denied the disbursement of the loan, leading the Financial Creditor to produce bank statements as evidence.

## Facts

Esspee Sarees Pvt. Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Skipper Textiles Pvt. Ltd. (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor defaulted on a financial debt of Rs. 1,02,87,671/-. On 2018-04-03, the Financial Creditor gave a corporate loan of Rs. 1,00,00,000/- to the Corporate Debtor for 180 days at 15% interest per annum. The Corporate Debtor failed to repay the loan and interest. On 2018-10-03, the Financial Creditor issued a notice to the Corporate Debtor to clear the dues, but the Corporate Debtor defaulted. The Corporate Debtor denied receiving the loan. The Financial Creditor presented a bank

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## Issues and analysis

### Issue 1: Whether there is 'debt' due and payable by the …

**Ratio:** A financial debt exists when there is a debt along with interest, if any, which is

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**Reasoning:** The Financial Creditor produced a bank statement showing a transfer of Rs. 1,00,00,000/-

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**Interpretation:** The term 'debt' under the IBC encompasses a liability or obligation in respect

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**Application:** The court applied the ratio to the fact that the Financial Creditor provided

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## Parties

- **Judges:** Madan B.…
- **Appellants:** Esspee Sarees…
- **Respondents:** Skipper Textiles…
- **Advocates:** Jishnu Cho…; Soumabho…; +3 more

## Timeline

- **2018-04-03 — Loan Disbur…**: The Financial Creditor gave the Corporate Debtor a corporate loan of Rs. 1,00,00,000/-…
- **2018-10-03 — Notice of D…**: The Financial Creditor gave notice to the Corporate Debtor calling upon them to clear 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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