# In the matter of Accord Hydroair (Pilkhuwa) Private Limited

> NCLT judgment dated 2023-11-07. Citation: TCN-2023-NCLT-00848. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 7 Nov 2023
- **Citation:** TCN-2023-NCLT-00848
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/accord-hydroair-pilkhuwa-private-limited-7610747f

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Vinzen Finance Private Limited (Financial Creditor) against Accord Hydroair (Pilkhuwa) Private Limited (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed that the Corporate Debtor defaulted on a loan agreement dated 03.03.2020, under which a loan of Rs. 4.37 crore was disbursed between 02.03.2020 and 30.10.2020 with an interest rate of 12% p.a. The Financial Creditor contended that the Corporate Debtor failed to repay the loan amount and interest, which amounted to Rs. 5.87 crore as of 05.09.2022. The Corporate Debtor argued that the loan agreement was never revoked, and no notice for payment of

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## Facts

Vinzen Finance Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Accord Hydroair (Pilkhuwa) Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). A loan agreement dated 03.03.2020 was entered into between the Financial Creditor and the Corporate Debtor, under which the Financial Creditor agreed to provide a loan of Rs. 5,00,00,000/- to the Corporate Debtor. The Financial Creditor disbursed Rs. 4.37 crore to the Corporate Debtor between 02.03.2020 and 30.10.2020. The interest rate on the loan was 12% p.a., payable monthly. The term of the loan agreement was two years. The Corporate Debtor failed to repay the loan amount and interest. As of

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## Issues and analysis

### Issue 1: Whether there exists a financial debt as defined under Section 5(8) of the Insolvency and …

**Ratio:** Section 5(8) of the Insolvency and Bankruptcy Code, 2016 defines 'financial debt' as a

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**Reasoning:** The court found that the loan disbursed by the Financial Creditor to the Corporate Debtor

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**Interpretation:** The definition of 'financial debt' under Section 5(8) is broad and includes any

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**Application:** The court applied the definition of 'financial debt' to the facts of the case

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** VINZEN FINANCE…
- **Respondents:** ACCORD HYDROAIR…

## Timeline

- **2020-03-03 — Loan Agre…**: Loan Agreement dated 03.03.2020 was entered into between Vinzen Finance Private Limited…
- **2020-03-02 — Loan Disbursem…**: Loan disbursement…

## 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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