# In the matter of Aadarsh Inframex Developers Pvt. Ltd. CP No. (IB)- 99-7-JPR-2020

> NCLT judgment dated 2023-01-13. Citation: TCN-2023-NCLT-05050. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 13 Jan 2023
- **Citation:** TCN-2023-NCLT-05050
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aadarsh-inframex-developers-pvt-ltd-cp-no-ib-99-7-jpr-2020-99111895

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Chetan Kumar Vijayvargiya (deceased) and Veena Vijayvargiya, claiming to be Financial Creditors, for initiating the Corporate Insolvency Resolution Process (CIRP) against Aadarsh Inframax Developers Pvt. Ltd., the Corporate Debtor. The Financial Creditors alleged default on the part of the Respondent in settling an amount of Rs. 2,78,56,710/- inclusive of interest as of 31.05.2020. The Corporate Debtor had approached the Financial Creditors for financial assistance of Rs. 1,70,00,000/- at 19.20% per annum interest, which was disbursed in four tranches. The Corporate Debtor argued that the claim does not qualify as 'financial debt' and that there was no privity of

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## Facts

Chetan Kumar Vijayvargiya (deceased) and Veena Vijayvargiya, claiming to be Financial Creditors, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Aadarsh Inframax Developers Pvt. Ltd. The Financial Creditors alleged that the Corporate Debtor defaulted on settling an amount of Rs. 2,78,56,710/-, inclusive of interest, as of 31.05.2020. The Corporate Debtor had approached the Financial Creditors for financial assistance of Rs. 1,70,00,000/- at 19.20% per annum interest, disbursed in four tranches. The first tranche of Rs. 30,00,000/- was disbursed on 27.07.2016, the second tranche of Rs. 1,00,00,000/- was disbursed on 03.10.2016, the third tranche of Rs. 20,00,000/- was

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## Issues and analysis

### Issue 1: Whether the debt in question qualifies as a …

**Ratio:** As per Section 5(8), financial debt is a debt along with interest which is disbursed

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**Reasoning:** The Adjudicating Authority considered the disbursal of the loan amount through

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**Interpretation:** The definition of 'Financial Debt' in Section 5(8) requires that a debt must be

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**Application:** In this case, the loan amount was disbursed to the Corporate Debtor, and the

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** Chetan Kumar…
- **Respondents:** Aadarsh Inframax…

## Timeline

- **2016-07-27 — First Tranche…**: The first tranche of Rs.…
- **2016-08-02 — First Tranche Agreement…**: Agreement dated 02.08.2016…

## 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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