# In the matter of Spring Field Shelters Pvt. Limited IBA-309-2019

> NCLT judgment dated 2019-06-27. Citation: TCN-2019-NCLT-02764. Vaaman Capital, the financial creditor, filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 27 Jun 2019
- **Citation:** TCN-2019-NCLT-02764
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/spring-field-shelters-pvt-limited-iba-309-2019-a53effe4

## Summary

### Background

Vaaman Capital, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Spring Field Shelters Private Limited, the corporate debtor, due to a default in repayment of ₹26,29,189. The date of default was mentioned as 2017-02-10. The corporate debtor had approached the financial creditor in May 2016 for a loan of ₹46,00,000, repayable in 24 weekly installments at an interest rate of 22% per annum. The corporate debtor provided 24 post-dated cheques of ₹2,50,000 each, totaling ₹50,00,000, including principal and interest, along with 3 blank cheques as security.

## Facts

In May 2016, Spring Field Shelters Private Limited (Corporate Debtor) approached Vaaman Capital (Financial Creditor) for a loan of ₹46,00,000 to meet urgent business requirements. The Financial Creditor agreed to lend the amount, repayable in 24 weekly installments at an interest rate of 22% per annum. The Corporate Debtor provided 24 post-dated cheques of ₹2,50,000 each, totaling ₹50,00,000, including principal and interest, along with 3 blank cheques as security. The date of default in repayment was 2017-02-10, with an outstanding amount of ₹26,29,189. The Financial Creditor filed an application under Section 7 of the IBC, 2016, to initiate CIRP. The Corporate Debtor claimed to have paid ₹33,50,000 between May 2016 and February 2017, and an additional ₹10,07,000

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is maintainable under Section 7 of the …

**Ratio:** Section 5(8) of the I&BC 2016 defines 'financial debt' as a debt along with interest,

…

**Reasoning:** The NCLT observed that the Corporate Debtor had signed the loan agreement, promissory

…

**Interpretation:** The definition of 'financial debt' under the IBC is broad and encompasses debts

…

**Application:** In this case, the Corporate Debtor's signed loan agreement, promissory note,

…

## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** Vaaman Ca…
- **Respondents:** Spring Field…

## Timeline

- **2016-05-01 — Loan Agre…**: Corporate Debtor approached Financial…
- **2017-02-10 — Date of D…**: Corporate Debtor defaulted…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/spring-field-shelters-pvt-limited-iba-309-2019-a53effe4