# In the matter of BIRD HOSPITALITY SERVICES PRIVATE LIMITED

> NCLT judgment dated 2025-06-13. Citation: TCN-2025-NCLT-00707. This case involves a Company Petition IB (IBC) No. 151/ND/2024 filed under Section 7 of the…

- **Court:** NCLT
- **Order date:** 13 Jun 2025
- **Citation:** TCN-2025-NCLT-00707
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bird-hospitality-services-private-limited-bda12856

## Summary

### Background

This case involves a Company Petition IB (IBC) No. 151/ND/2024 filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Smriti Bhatia and others (Financial Creditors) against Bird Hospitality Services Pvt Ltd (Corporate Debtor). The Financial Creditors, being the legal heirs of Late Shri Ankur Bhatia, claim that the Corporate Debtor defaulted on a payment of Rs. 21,50,58,118/-, which includes interest. The Corporate Debtor disputes the claim, arguing that the funds infused by Late Shri Ankur Bhatia were capital infusions, not loans, and that the Petitioners lack the locus standi to file the petition without a succession certificate.

## Facts

Late Shri Ankur Bhatia, who was a Director and shareholder of Bird Hospitality Services Pvt Ltd, extended a loan of Rs. 27,74,65,000/- to the company. After his death on June 4, 2021, his legal heirs (Smriti Bhatia, Saina Bhatia, and Arnav Bhatia) collectively recalled their 3/4th share of the loan, amounting to Rs. 20,80,98,750/-, by issuing a notice dated 30.11.2023. The Corporate Debtor allegedly defaulted on the repayment, with the total outstanding, including interest, amounting to Rs. 21,50,58,118/- as of 13.03.2024. The Corporate Debtor acknowledged the infusion of funds but argued it was a capital infusion, not a loan, and that the legal heirs needed a succession certificate to claim the debt. The balance sheets of the Corporate Debtor reflected the infused

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## Issues and analysis

### Issue 1: Whether the debt claimed by the Petitioners qualifies as a 'financial debt' under Section 5(8) of …

**Ratio:** A 'financial debt' under Section 5(8) of the IBC includes any amount raised under a

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**Reasoning:** The NCLT relied on the Supreme Court's judgment in Orator Marketing Private Limited vs

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**Interpretation:** Section 5(8) of the IBC should be interpreted broadly to include any debt that

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**Application:** In this case, the funds infused by Late Shri Ankur Bhatia were treated as a

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## Parties

- **Judges:** JYOTSNA S…; Anu Jagmoha…
- **Appellants:** SMRITI B…
- **Respondents:** Bird Hospitality…; M/s BIRD HOSPITALI…
- **Advocates:** Swapnil…; Vaibhav Men…; +6 more

## Timeline

- **2021-06-04 — Death of Anku…**: Shri Ankur Bhatia, the Director and…
- **2023-11-30 — Loan Recall…**: The Petitioners, as legal heirs of Ankur Bhatia, issued a notice recalling their 3/4th…

## 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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