# Apheleia Power Projects Limited Vs M/S Shithala Dealers Limited

> NCLT judgment dated 2025-06-24. Citation: TCN-2025-NCLT-00740. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 24 Jun 2025
- **Citation:** TCN-2025-NCLT-00740
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/apheleia-power-projects-limited-vs-ms-shithala-dealers-limited-a717116a

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Apheleia Power Projects Limited (Financial Creditor/Applicant) against M/S Shithala Dealers Limited (Corporate Debtor/Respondent). The Financial Creditor sought initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to a default in repayment of a financial debt amounting to Rs. 8,98,00,000 as of June 26, 2024, comprising principal of Rs. 4,40,00,000 and interest of Rs. 4,68,00,000 calculated at 15% per annum, after a partial payment of Rs. 10,00,000.

## Facts

Apheleia Power Projects Limited (Financial Creditor) filed a company petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/S Shithala Dealers Limited (Corporate Debtor) seeking initiation of CIRP. The Financial Creditor disbursed ₹4.60 crore to the Corporate Debtor between December 2018 and March 2019 under a Lender-Borrower Agreement dated December 5, 2018, with repayment (at 15% p.a. interest) due by May 12, 2024. The Corporate Debtor defaulted, making only a partial payment of ₹10 lakh on June 25, 2024, leaving ₹8.98 crore unpaid. The Financial Creditor supported the default claim with ledger accounts, a NeSL Certificate, the Debtor's email dated June 25, 2024, admitting debt and seeking a 30-day extension, and debt admission in Paragraph 7

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the I&B Code for initiation of CIRP against the …

**Ratio:** The essential condition for maintaining an application under Section 7 of the I&B

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**Reasoning:** The Adjudicating Authority relied on the precedents set by the Supreme Court in cases

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**Interpretation:** The interpretation of Section 7 of the I&B Code requires the Adjudicating

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**Application:** In this case, the Adjudicating Authority found that the Financial Creditor had

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## Parties

- **Judges:** BIDISHA BA…; Siddharth…
- **Appellants:** Apheleia Power…
- **Respondents:** Shithala Dealers…; M/S Shithala…
- **Advocates:** Srijan Me…; Sumit S…

## Timeline

- **2018-12-01 — Loan Disbur…**: Financial Creditor disbursed ₹4.60 crore to the Corporate Debtor between Dec 2018 and Mar…
- **2018-12-05 — Lender-Borrower…**: Lender-Borrower Agreement signed between…

## 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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