# In the matter of Cellugen Biotech Private Limited

> NCLT judgment dated 2024-09-11. Citation: TCN-2024-NCLT-00616. The case involves a petition filed by Dr. Firdosh Rohintan Mahuwalla, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 11 Sept 2024
- **Citation:** TCN-2024-NCLT-00616
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cellugen-biotech-private-limited-2d0feeb3

## Summary

### Background

The case involves a petition filed by Dr. Firdosh Rohintan Mahuwalla, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Cellugen Biotech Private Limited, the Corporate Debtor. The Financial Creditor, who was previously a director of the Corporate Debtor, provided financial assistance to the company in the form of a loan. The Corporate Debtor defaulted on the repayment of this loan, leading to the filing of the petition. The Corporate Debtor was incorporated on 18.08.2008. The application was filed on 20.12.2023.

## Facts

Dr. Firdosh Rohintan Mahuwalla, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s Cellugen Biotech Private Limited, the Corporate Debtor. The Corporate Debtor was incorporated on 18.08.2008. The Financial Creditor, who was a director of the Corporate Debtor, provided financial assistance to the company via a loan. Between 2016 and 2019, Rs. 2,16,65,000/- was disbursed from the Financial Creditor's personal account to the Corporate Debtor, with an agreed interest rate of 8% per annum. The Corporate Debtor repaid Rs. 85,00,000/-, leaving Rs. 1,31,65,000/- outstanding. The Corporate Debtor acknowledged the debt in a board meeting on 04.03.2019, promising repayment. The Financial Creditor

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## Issues and analysis

### Issue 1: Whether the petition under Section 7 of the …

**Ratio:** The Hon'ble Supreme Court in the judgement of “Innoventive Industries Limited υ. ICICI

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**Reasoning:** The Adjudicating Authority considered the submissions of both parties and examined the

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** The Financial Creditor demonstrated that a debt existed and that the Corporate

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; Sanjeev R…
- **Appellants:** FIRDOSH ROHΙΝΤΑΝ…
- **Respondents:** CELLUGEN BIOTECH…; M/S CELLUGEN…

## Timeline

- **2008-08-18 — Incorporation of…**: M/s Cellugen Biotech Private…
- **2016-01-01 — Loan Disburseme…**: The Financial Creditor started disbursing…

## 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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