# In the matter of Alchemist Holdings Limited

> NCLT judgment dated 2025-06-04. Citation: TCN-2025-NCLT-00022. The case pertains to a petition filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Jun 2025
- **Citation:** TCN-2025-NCLT-00022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alchemist-holdings-limited-19a57dc9

## Summary

### Background

The case pertains to a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by KDS Corporation Private Limited (Financial Creditor) against Alchemist Holdings Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed that the Corporate Debtor defaulted on a loan repayment. The Financial Creditor had granted a loan facility to the Corporate Debtor, and a loan agreement was executed on 01.04.2017. The loan tenure was extended, and a moratorium period was also provided. However, the Corporate Debtor failed to repay the outstanding loan amount, leading to the filing of the petition.

## Facts

KDS Corporation Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Alchemist Holdings Limited (Corporate Debtor). A loan agreement was executed between the parties on 01.04.2017, where the Financial Creditor granted a loan facility of Rs. 1,85,29,530/- to the Corporate Debtor. The loan tenure was initially for 3 years but was later extended by one year until 31.03.2021. The loan agreement included a moratorium period of 9 months. The Corporate Debtor failed to repay the outstanding loan amount by 31.12.2021, leading to a default. The Corporate Debtor sought an additional time period until 30.06.2022, acknowledging a debt of Rs.

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## Issues and analysis

### Issue 1: Whether the petition filed by KDS Corporation Private Limited under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Adjudicating Authority considered the submissions of both parties and examined the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The Adjudicating Authority found that KDS Corporation Private Limited was a

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; Sanjeev R…
- **Appellants:** KDS CORPORATION…
- **Respondents:** ALCHEMIST…

## Timeline

- **2017-04-01 — Loan Agreement…**: KDS Corporation Private Limited and Alchemist Holdings Limited executed a loan agreement…
- **2020-02-20 — Extension R…**: Alchemist Holdings Limited requested an extension of the loan agreement for an additional…

## 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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