# In the matter of SR Mediservices Private Limited IBA-26-2020

> NCLT judgment dated 2021-10-04. Citation: TCN-2021-NCLT-00884. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Oct 2021
- **Citation:** TCN-2021-NCLT-00884
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sr-mediservices-private-limited-iba-26-2020-ff7a0b5c

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Mr. V. G. Murali, an ex-Director of the Corporate Debtor, M/s. SR Mediservices Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The applicant claims to be a Financial Creditor.

## Facts

Mr. V. G. Murali, an ex-Director of M/s. SR Mediservices Private Limited, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming to be a Financial Creditor. He sought to initiate CIRP against the company. The Financial Creditor claimed that the Corporate Debtor owed him Rs. 1,44,25,000/- as of 01.11.2019. The Financial Creditor had invested in the Corporate Debtor after responding to a newspaper advertisement on 26.03.2017. He entered into a Business Agreement dated 14.04.2017 with one of the Directors, Dr.Sarasakavitha, and became a Director himself. 37.5% of Dr. Sarasakavitha's shares were transferred to him. He also lent Rs. 29,00,000/- to the Corporate Debtor between 06.07.2017 and 24.01.2018. The Financial Creditor was later

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## Issues and analysis

### Issue 1: Whether the applicant, Mr. V. G. Murali, qualifies as a Financial Creditor under Section 5(7) of …

**Ratio:** Section 5(7) of the Insolvency and Bankruptcy Code, 2016 defines a Financial Creditor as

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**Reasoning:** The Tribunal perused the documents placed on record and found that the applicant had

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**Interpretation:** The definition of Financial Creditor is interpreted broadly to include

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**Application:** Based on the evidence presented, the Tribunal determined that Mr. V. G. Murali,

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** V. G. M…
- **Respondents:** SR Mediservices…
- **Advocates:** Prapti…

## Timeline

- **2017-03-26 — Newspaper Adve…**: Financial Creditor came across a call for…
- **2017-04-14 — Business Ag…**: Financial Creditor entered into a Business Agreement with one of the Directors of 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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