# In the matter of Alfavision Overseas (India) Private Limited

> NCLT judgment dated 2024-04-04. Citation: TCN-2024-NCLT-01827. Kanak Fairdeal (India) Private Limited filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 4 Apr 2024
- **Citation:** TCN-2024-NCLT-01827
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alfavision-overseas-india-private-limited-69b2b849

## Summary

### Background

Kanak Fairdeal (India) Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Alfavision Overseas (India) Limited for a default amount of Rs. 6,50,69,301/-, comprising a principal amount of Rs. 1,50,00,000/- and interest of Rs. 5,00,69,301/-. The alleged date of default was 09.10.2015. The applicant claimed to have provided an unsecured loan to the respondent in 2013, which the respondent failed to repay. The respondent, however, contended that the amount was an advance for a land sale agreement that fell through, leading to forfeiture of the advance. The applicant initially filed a winding-up petition before the High Court, which was later

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## Facts

In 2013, Alfavision Overseas (India) Limited (the respondent) allegedly approached Kanak Fairdeal (India) Private Limited (the applicant) for an unsecured loan of Rs. 1,50,00,000. The applicant claims to have disbursed this amount in five installments of Rs. 30,00,000 each on 10.10.2013, with an interest rate of 24% per annum. No formal agreement was executed for this loan. The applicant states that the respondent defaulted on repayment, with the default date being 09.10.2015, leading to a total outstanding of Rs. 6,50,69,301 (principal + interest). The applicant issued a notice on 12.08.2016 requesting repayment. The respondent, however, contends that the Rs. 1,50,00,000 was an advance for a land sale agreement for 24.5 acres of land in Saras (M.P.), owned by the

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## Issues and analysis

### Issue 1: Whether the amount of Rs. 1,50,00,000 transferred from the applicant to the respondent constitutes …

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

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**Reasoning:** The NCLT found that there was no agreement executed between the applicant and the

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

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**Application:** In this case, the NCLT determined that due to the lack of a formal agreement,

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## Parties

- **Judges:** P. Moha…; KAUSHALENDRA…
- **Appellants:** Kanak Fairdeal…
- **Respondents:** Alfavision…; Alfavision…

## Timeline

- **2013-01-01 — Loan Disb…**: The applicant disbursed an unsecured loan of Rs. 1,50,00,000 to the respondent in five…
- **2015-10-09 — Date of D…**: The applicant claims the respondent…

## 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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