# In the matter of Uttranchal Biodiesel Ltd. (IB)-1235(ND)-2019

> NCLT judgment dated 2019-05-27. Citation: TCN-2019-NCLT-03189. M/s. Kalindi Ispat Pvt. Ltd. filed a petition under Section 9 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 May 2019
- **Citation:** TCN-2019-NCLT-03189
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uttranchal-biodiesel-ltd-ib-1235nd-2019-a13a0e9d

## Summary

### Background

M/s. Kalindi Ispat Pvt. Ltd. filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s. Uttranchal Biodiesel Ltd. The petition was based on the alleged inability of the Corporate Debtor to liquidate its debts, claiming an unsecured loan of Rs. 1,60,00,000/- was given, which is due with 15% interest from 01.04.2010. The Operational Creditor claimed the debt was acknowledged on 01.04.2012 and a demand notice was issued on 29.10.2018 after the Corporate Debtor failed to return the amount requested on 18.07.2018. The Corporate Debtor denied liability, stating a release deed was signed on 25.10.2010.

## Facts

M/s. Kalindi Ispat Pvt. Ltd. (Operational Creditor) claimed that it had extended an unsecured loan of Rs. 1,60,00,000/- to M/s. Uttranchal Biodiesel Ltd. (Corporate Debtor), with interest at 15% per annum from 01.04.2010. The Operational Creditor asserted that the debt was acknowledged on 01.04.2012. After the Corporate Debtor allegedly failed to repay the amount, the Operational Creditor issued a demand notice on 29.10.2018. The Corporate Debtor denied any liability, claiming that a release deed had been executed on 25.10.2010, absolving them of any debt. The Operational Creditor disputed the validity of the release deed. The petition was filed on 08.05.2019. The court noted the lack of documentation to support the loan transaction and the uncertainty regarding

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the IBC, 2016 is …

**Ratio:** A petition under Section 9 of the IBC requires the establishment of a valid operational

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**Reasoning:** The court reasoned that the Corporate Debtor's claim of a release deed, which the

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**Interpretation:** Section 9 of the IBC requires the petitioner to demonstrate a clear and

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**Application:** In this case, the Corporate Debtor's claim of a release deed and the lack of

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## Parties

- **Judges:** Ina Mal…; V.K. SUB…
- **Appellants:** M/s. Kalindi…
- **Respondents:** M/s. Uttranchal…

## Timeline

- **2010-04-01 — Alleged Unsecu…**: M/s. Kalindi Ispat Pvt. Ltd. allegedly gave an unsecured loan of Rs. 1,60,00,000/- to…
- **2010-10-25 — Release…**: M/s. Uttranchal Biodiesel Ltd. claimed a release deed was signed, absolving them of any…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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