# In the matter of CBS Holdings Private Limited

> NCLT judgment dated 2024-01-16. Citation: TCN-2024-NCLT-03052. The case pertains to a petition filed by M/S. PAS ENTERPRISE, a financial creditor, under…

- **Court:** NCLT
- **Order date:** 16 Jan 2024
- **Citation:** TCN-2024-NCLT-03052
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cbs-holdings-private-limited-6df3dc1c

## Summary

### Background

The case pertains to a petition filed by M/S. PAS ENTERPRISE, a financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/S. CBS HOLDINGS PRIVATE LIMITED, the corporate debtor, due to a default in payment of a financial debt. The financial creditor claimed that the corporate debtor had defaulted on a loan repayment, leading to the application for CIRP. The Adjudicating Authority initially directed the applicant to issue notice to the corporate debtor, but the corporate debtor failed to appear despite service of notice, leading to an ex-parte hearing.

## Facts

M/S. PAS ENTERPRISE, the applicant and financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S. CBS HOLDINGS PRIVATE LIMITED, the respondent and corporate debtor. The corporate debtor, incorporated on 20.04.2008, defaulted on a payment of Rs. 1,69,40,000/- as of 01.04.2019. The financial creditor disbursed a loan to the corporate debtor on 11.03.2015, repayable by 31.03.2019, with an 18% per annum interest rate. The corporate debtor requested conversion of outstanding dues of Rs.93,84,5361- plus interest of Rs.16,15,4641/- into a lump sum of Rs.1,10,00,000/-, payable within six months, i.e., by September 2019. The corporate debtor failed to repay the loan.

…

## Issues and analysis

### Issue 1: Whether the applicant falls within the definition of Financial Creditor under the Insolvency and …

**Ratio:** The definition of Financial Creditor under the Insolvency and Bankruptcy Code, 2016,

…

**Reasoning:** The Adjudicating Authority examined Form I and the documents annexed with the application

…

**Interpretation:** The term 'Financial Creditor' is interpreted broadly to include entities that

…

**Application:** The applicant, M/S. PAS ENTERPRISE, was deemed a Financial Creditor because it

…

## Parties

- **Judges:** SH. BACHU VENKAT…; Sanjeev R…
- **Appellants:** M/S PAS ENT…
- **Respondents:** M/S CBS HOLDINGS…

## Timeline

- **2008-04-20 — Incorporation of…**: M/S. CBS HOLDINGS PRIVATE…
- **2015-03-11 — Loan Disbur…**: M/S. PAS ENTERPRISE disbursed a loan 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/cbs-holdings-private-limited-6df3dc1c