# In the matter of Dar Media Private Limited CP (IB) 299-MB-2020

> NCLT judgment dated 2022-05-06. Citation: TCN-2022-NCLT-02848. Speed-O-Controls Private Limited, the Financial Creditor (FC), filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 6 May 2022
- **Citation:** TCN-2022-NCLT-02848
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dar-media-private-limited-cp-ib-299-mb-2020-fbc7a696

## Summary

### Background

Speed-O-Controls Private Limited, the Financial Creditor (FC), filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Dar Media Private Limited, the Corporate Debtor (CD), for non-payment of outstanding dues. The FC is a private limited company incorporated under the Companies Act, 1956. The FC advanced a loan of Rs. 2,00,00,000/- to the CD for 90 days with interest at 18% p.a. until 90 days and 24% p.a. on the delayed period. The loan was disbursed on 23.04.2015. The CD also provided an affidavit cum declaration on 23.04.2015 acknowledging the loan. The CD failed to repay the principal and accrued interest, which was outstanding as of 23.07.2015. The FC issued a demand

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## Facts

Speed-O-Controls Private Limited (FC) advanced a loan of Rs. 2,00,00,000/- to Dar Media Private Limited (CD) for a period of 90 days, with an interest rate of 18% p.a. until the 90-day period, and 24% p.a. for any delayed period. The loan was disbursed on 23.04.2015, evidenced by bank records. The CD acknowledged the debt through an affidavit cum declaration dated 23.04.2015. The CD failed to repay the principal and accrued interest, with the outstanding amount reflected in the ledger accounts as of 23.07.2015. The FC issued a demand notice on 23.11.2019, but the CD did not repay the loan. The CD made partial repayments of Rs.70,30,000/- between 2015 and 2017, which were adjusted towards principal and interest. As of 31.12.2019, the outstanding amount was

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## Issues and analysis

### Issue 1: Whether the debt in question qualifies as a 'Financial Debt' as defined under Section 5(8) of the …

**Ratio:** Section 5(8) of the Insolvency and Bankruptcy Code, 2016 defines 'Financial Debt' as a

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**Reasoning:** The court considered the facts presented, including the loan agreement, disbursement

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**Interpretation:** The interpretation of Section 5(8) focuses on whether the debt was disbursed

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**Application:** In this case, the FC advanced a loan to the CD, and the CD acknowledged the

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## Parties

- **Judges:** P.N. Des…; Sh. Kapal Kumar…
- **Appellants:** Speed-O-Controls…
- **Respondents:** Dar Media Private…

## Timeline

- **2015-04-23 — Loan Disbur…**: Speed-O-Controls Private Limited disbursed a loan of Rs. 2,00,00,000/- to Dar Media…
- **2015-04-23 — Affidavit cum…**: Dar Media Private Limited provided an…

## 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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