# In the matter of Dev Versha Publication Pvt. Ltd.

> NCLT judgment dated 2023-09-26. Citation: TCN-2023-NCLT-01470. The case involves an application filed by M/s. Virtual Business Solutions Pvt. Ltd. under…

- **Court:** NCLT
- **Order date:** 26 Sept 2023
- **Citation:** TCN-2023-NCLT-01470
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dev-versha-publication-pvt-ltd-9a8af66c

## Summary

### Background

The case involves an application filed by M/s. Virtual Business Solutions Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Dev Versha Publication Pvt. Ltd. The applicant, being the Financial Creditor, claims a default in repayment of a debt amounting to Rs. 1,42,02,575/-. The Corporate Debtor had approached the Financial Creditor for a business loan of Rs. 1,35,00,000/-, which was disbursed on various dates. A loan agreement was executed on July 15, 2022, outlining the terms and conditions. The Corporate Debtor defaulted on the repayment schedule, leading to the Financial Creditor serving reminder letters and extending the repayment deadline, which was ultimately not met.

## Facts

M/s. Virtual Business Solutions Pvt. Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Dev Versha Publication Pvt. Ltd. (Corporate Debtor) due to a default in repayment of debt amounting to Rs. 1,42,02,575/-. The Corporate Debtor had requested a business loan of Rs. 1,35,00,000/- from the Financial Creditor, which was disbursed between 2022-07-20 and 2022-08-03 at an interest rate of 12% per annum. A loan agreement was executed on 2022-07-15. As per the loan agreement, the Corporate Debtor was liable to pay the principal and interest by 2022-11-04, but failed to do so. The Financial Creditor sent a reminder letter on 2022-11-07. The

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## Issues and analysis

### Issue 1: Whether the applicant, M/s. Virtual Business Solutions Pvt. Ltd., is a Financial Creditor as …

**Ratio:** Section 5(7) of the IBC defines a Financial Creditor as "any person to whom a

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**Reasoning:** The Tribunal considered the loan agreement executed between the Financial Creditor and

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**Interpretation:** The definition of Financial Creditor under Section 5(7) is interpreted broadly

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**Application:** In this case, the loan agreement and the disbursal of funds by Virtual Business

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## Parties

- **Judges:** BACHU VENKAT…; RAHUL BHA…
- **Appellants:** M/S. VIRTUAL…
- **Respondents:** Dev Versha…; M/S. Dev Versha…

## Timeline

- **2022-07-15 — Loan Agreement…**: The Corporate Debtor and Financial…
- **2022-07-20 — Loan Disbursa…**: Loan disbursal started from…

## 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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