# In the matter of Campus Impex Private Limited

> NCLT judgment dated 2024-08-13. Citation: TCN-2024-NCLT-00824. NRS Steel Traders LLP, the financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 13 Aug 2024
- **Citation:** TCN-2024-NCLT-00824
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/campus-impex-private-limited-91a432e0

## Summary

### Background

NRS Steel Traders LLP, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Campus Impex Private Limited, the corporate debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The financial creditor had supplied TMT Bar to the corporate debtor and made advance payments. Due to the corporate debtor's failure to supply the materials, the financial creditor demanded repayment. An agreement was reached on June 1, 2019, to convert the advance payment of Rs. 1,00,00,000 into a financial loan, repayable in four installments with 12% interest per annum. The corporate debtor failed to repay the loan as per the agreement, leading to the application for CIRP.

## Facts

NRS Steel Traders LLP (Financial Creditor) supplied TMT Bar to Campus Impex Private Limited (Corporate Debtor) and received advance payments. The Corporate Debtor failed to supply the materials, leading the Financial Creditor to demand repayment of the advance payment of Rs. 1,00,00,000. On June 1, 2019, both parties entered into an agreement to convert the advance payment into a financial loan, repayable in four equal monthly installments of Rs. 25 Lakh with 12% interest per annum. The Corporate Debtor failed to pay the converted loan as per the agreement. The Date of Default is claimed as on 30.09.2019. The total amount claimed to be in default is Rs. 1,17,00,000/- inclusive of 12% interest rate per annum. The Financial Creditor issued reminders from June 2019 to

…

## Issues and analysis

### Issue 1: Whether the debt qualifies as a 'Financial …

**Ratio:** The essential condition of a financial debt is the disbursement of money against

…

**Reasoning:** The court relied on the agreement between the parties, which converted the advance

…

**Interpretation:** The term 'Financial Debt' under Section 5(8) of the I&B Code requires a

…

**Application:** In this case, the advance payment was converted into a loan with a specified

…

## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** NRS Steel Traders…
- **Respondents:** Campus Impex…

## Timeline

- **2018-07-01 — Advance P…**: The Petitioner paid an advance of Rs. 1,00,00,000/- on various dates from July 2018 to…
- **2018-09-01 — Advance P…**: The Petitioner paid an advance of Rs. 1,00,00,000/- on various dates from July 2018 to…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/campus-impex-private-limited-91a432e0