# In the matter of Debtone Corporate Advisory Private Limited C.P.(IB) No. 973 of 2021

> NCLT judgment dated 2023-03-17. Citation: TCN-2023-NCLT-04211. The Company Petition was filed by Mr. Sougat Samiran Ghosh and Mrs. Tapati Ghosh seeking to…

- **Court:** NCLT
- **Order date:** 17 Mar 2023
- **Citation:** TCN-2023-NCLT-04211
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/debtone-corporate-advisory-private-limited-cpib-no-973-of-2021-aaabaddc

## Summary

### Background

The Company Petition was filed by Mr. Sougat Samiran Ghosh and Mrs. Tapati Ghosh seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Debtone Corporate Advisory Private Limited, alleging that the Corporate Debtor defaulted in making payment to the Financial Creditors. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for a resolution of financial debt amounting to Rs. 2,66,00,000/-, comprising a principal amount of Rs. 1,44,00,000/- and interest of Rs. 1,22,00,000/-, as per the Memorandum of Understanding executed between the parties.

## Facts

Mr. Sougat Samiran Ghosh and Mrs. Tapati Ghosh (Petitioners) filed a Company Petition seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Debtone Corporate Advisory Private Limited (Corporate Debtor). The Petitioners claimed that the Corporate Debtor defaulted on a financial debt of Rs. 2,66,00,000/-, which included a principal amount of Rs. 1,44,00,000/- and interest of Rs. 1,22,00,000/-, as per the Memorandum of Understanding (MOU) executed between the parties. The Petitioners had granted loans to the Corporate Debtor on multiple occasions, documented by MOUs dated 01.03.2016, 02.04.2016, 19.06.2016, and 12.08.2016. The Corporate Debtor regularly credited interest to the Petitioners from August 2016 to June 2017. The Petitioners issued a letter

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on a …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court observed that the Corporate Debtor had approached the Petitioners for financial

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**Interpretation:** The legal issue is interpreted in the context of Section 7 of the IBC, which

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**Application:** The court applied the ratio to the facts by noting the existence of MOUs

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** Sougat Samiran…
- **Respondents:** Debtone Corporate…

## Timeline

- **2016-03-01 — MOU Exec…**: Petitioners No. 1 and 2 granted loan of Rs. 5,00,000 each to Corporate Debtor with 12%…
- **2016-04-02 — MOU Exec…**: Petitioners No. 1 and 2 advanced an aggregate loan of Rs. 30,00,000 to Corporate Debtor…

## 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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