# In the matter of Akshay Techforge Private Limited CP (IB) No.1049-MB-IV-2021

> NCLT judgment dated 2023-02-09. Citation: TCN-2023-NCLT-04691. Advantagesai Projects Private Limited, the Financial Creditor, filed a Company Petition (C.P.…

- **Court:** NCLT
- **Order date:** 9 Feb 2023
- **Citation:** TCN-2023-NCLT-04691
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/akshay-techforge-private-limited-cp-ib-no1049-mb-iv-2021-706cdbeb

## Summary

### Background

Advantagesai Projects Private Limited, the Financial Creditor, filed a Company Petition (C.P. (IB) No. 1049/NCLT/MB/C-IV/2021) under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Akshay Techforge Private Limited, the Corporate Debtor, to initiate Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a sum of Rs.1,48,40,466/- in principal and Rs.90,77,003.66 as interest @ 18% p.a., aggregating to Rs. 2,39,17,469.66 as on 30.09.2021. The Corporate Debtor had defaulted on a loan from State Bank of India and approached the Financial Creditor for assistance. The Corporate Debtor and Financial Creditor entered into an Agreement to Sale on 09.04.2019, wherein the Corporate Debtor agreed to repay the amount by 31.03.2020.

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## Facts

Akshay Techforge Private Limited (Corporate Debtor) defaulted on a loan from State Bank of India and needed funds to settle outstanding dues. The Corporate Debtor approached Advantagesai Projects Private Limited (Financial Creditor) for financial assistance. The Financial Creditor disbursed Rs.48,36,540/- to the Corporate Debtor up to 12.11.2018. The Financial Creditor agreed to lend Rs.1.00 Crore to the Corporate Debtor on or before 10.04.2019. The Corporate Debtor and the Financial Creditor entered into an Agreement to Sale on 09.04.2019, acknowledging the earlier disbursal. The Corporate Debtor agreed to repay the amount on or before 31.03.2020. The Financial Creditor and Corporate Debtor entered into an Agreement to Sale on 01.04.2020, extending the repayment terms

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## Issues and analysis

### Issue 1: Whether the debt claimed by the Financial Creditor falls under the definition of 'Financial Debt' …

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

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**Reasoning:** The NCLT reasoned that the transaction between the parties was a simple Agreement to Sale

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**Interpretation:** The interpretation of 'financial debt' under Section 5(8) of the IBC requires

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**Application:** In this case, the NCLT found that the advance given by the Financial Creditor

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## Parties

- **Judges:** Manoj Kumar…; KISHORE VEMULAPALL…
- **Appellants:** Advantagesai…
- **Respondents:** Akshay Techforge…
- **Advocates:** Harsh Kes…; Avinash R.…; +1 more

## Timeline

- **2018-11-12 — Financial Ass…**: Financial Creditor disbursed…
- **2019-04-09 — Agreement t…**: Corporate Debtor and Financial Creditor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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