# In the matter of Alchemist Holdings Limited

> NCLT judgment dated 2025-06-04. Citation: TCN-2025-NCLT-00015. 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-00015
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alchemist-holdings-limited-ff3ba84d

## 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) to initiate Corporate Insolvency Resolution Process (CIRP) against Alchemist Holdings Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor defaulted on a loan repayment. The Financial Creditor and Corporate Debtor entered into a Loan Agreement dated 01.04.2017, where the Financial Creditor advanced INR 1,85,29,530/- to the Corporate Debtor. The loan tenure was for 3 years, later extended by 1 year until 31.03.2021. A moratorium period of 9 months was also granted, ending on 31.12.2021. The Corporate Debtor failed to repay the loan amount, leading to defaults on 31.12.2021 and

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## 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). The Financial Creditor and the Corporate Debtor entered into a Loan Agreement dated 01.04.2017, where the Financial Creditor advanced a total sum of INR 1,85,29,530/- to the Corporate Debtor. The loan tenure was for 3 years, starting from 01.04.2017 and ending on 31.03.2020. The Loan Agreement also provided for a moratorium period of 9 months after the end of the availability period. Before the expiry of the loan agreement, the Corporate Debtor requested an extension of the Loan Agreement for an additional year, which was

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor falls within the ambit of Section 7 of the …

**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 and evidence presented by both the

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The Adjudicating Authority found that the Financial Creditor had demonstrated

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## Parties

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

## Timeline

- **2017-04-01 — Loan Agre…**: KDS Corporation Private Limited (Financial Creditor) and Alchemist Holdings Limited…
- **2020-02-20 — Extension R…**: The Corporate Debtor requested an extension of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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