# Piramal Capital & Housing Finance Ltd. vs. Tulsi Spices and Foods Private Limited

> NCLT judgment dated 2026-08-05. Citation: TCN-2026-NCLT-00801. Piramal Capital & Housing Finance Ltd. (Financial Creditor) filed an application under Section…

- **Court:** NCLT
- **Order date:** 5 Aug 2026
- **Citation:** TCN-2026-NCLT-00801
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-cuttack/piramal-capital-housing-finance-ltd-vs-tulsi-spices-and-foods-private-limited-5d0xz

## Summary

### Background

Piramal Capital & Housing Finance Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Tulsi Spices and Foods Private Limited (Corporate Debtor). The Financial Creditor had extended a project loan facility to Shree Baladevjew Infrastructure (Co-Borrower) and the Corporate Debtor as a Co-Borrower. The loan was sanctioned on 17.05.2013, and the Corporate Debtor defaulted on 01.12.2014. The loan account was classified as a Non-Performing Asset (NPA) on 31.03.2015. Despite various demand notices and enforcement proceedings under the SARFAESI Act, and multiple One Time Settlement (OTS) proposals from the Co-Borrower, no repayment was made. The total amount claimed in default as of 31.12.2025 is Rs.

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## Facts

Piramal Capital & Housing Finance Ltd. (Financial Creditor) filed an application under Section 7 of the IBC, 2016, against Tulsi Spices and Foods Private Limited (Corporate Debtor).

The Financial Creditor extended a project loan facility to Shree Baladevjew Infrastructure (Co-Borrower) and the Corporate Debtor as Co-Borrower.

Security and finance documents, including a Loan Agreement, Personal Guarantee Deeds, Equitable Mortgage Deeds, Escrow Agreement, Demand Promissory Note, and Hypothecation of Receivables, were executed.

The loan was sanctioned on 17.05.2013, and the Loan Agreement and security documents were executed on 22.05.2013.

The total sanctioned amount was Rs. 7,55,00,000/-, disbursed in tranches between 22.05.2013 and 29.01.2015.

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## Issues and analysis

### Issue 1: Whether a financial debt exists within the meaning of Section 5(8) of the Insolvency and Bankruptcy …

**Ratio:** A financial debt exists, as evidenced by the loan sanction, execution of security

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**Reasoning:** The Adjudicating Authority considered the pleadings, documents, and affidavits, finding

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**Interpretation:** Section 5(8) of the IBC defines 'financial debt' broadly to include a debt

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**Application:** The loan provided by Piramal Capital & Housing Finance Ltd. to Tulsi Spices

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## Parties

- **Judges:** CHEEKATI RADHA…; BANWARI LAL MEENA…; +1 more
- **Appellants:** Piramal Capital…
- **Respondents:** Tulsi Spices and…
- **Other parties:** Dewan Housing…; Pratap Muk…
- **Advocates:** Saswat Kumar…; SUBHAM AG…

## Timeline

- **2013-05-17 — Loan Sanc…**: The project loan…
- **2013-05-22 — Loan Agreement and Security Documents Executed;…**: The Loan Agreement and connected security documents were executed, and the first tranche…

## 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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