# In the matter of Dhanada Corporation Limited CP (IB) 4671-MB-2018

> NCLT judgment dated 2022-08-26. Citation: TCN-2022-NCLT-01249. The case involves a petition filed by Sudhir T Deshpande, the Financial Creditor, under Section…

- **Court:** NCLT
- **Order date:** 26 Aug 2022
- **Citation:** TCN-2022-NCLT-01249
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dhanada-corporation-limited-cp-ib-4671-mb-2018-b08af738

## Summary

### Background

The case involves a petition filed by Sudhir T Deshpande, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Dhanada Corporation Limited, the Corporate Debtor, alleging default in payment of a financial debt. The Corporate Debtor was earlier known as Vedant Hotels Limited. The Financial Creditor claimed a default amount of Rs. 23,22,23,222/- as on 30.09.2018, with further interest at 19% p.a. from 01.10.2018. The Corporate Debtor contested the maintainability of the petition, arguing that the Financial Creditor had not demonstrated any valid claim or debt and that the claim was time-barred.

## Facts

Sudhir T Deshpande, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Dhanada Corporation Limited, the Corporate Debtor, alleging default in payment of a financial debt. The Corporate Debtor was incorporated on 14.07.1986. The Financial Creditor claimed that the total amount of debt granted was Rs. 4,61,00,000/-, and the amount claimed to be in default was Rs. 23,22,23,222/- as on 30.09.2018, with further interest at 19% p.a. from 01.10.2018. The Corporate Debtor argued that the Financial Creditor had not demonstrated any valid claim or debt and that the claim was time-barred. The Corporate Debtor had issued cheques aggregating to Rs. 2,20,00,000/-

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has established that …

**Ratio:** A disbursement is a sine qua non for any debt to fall within the ambit of the definition

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**Reasoning:** The court concluded that the Financial Creditor had not established that the money was

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**Interpretation:** The court interpreted the definition of financial debt to require proof of

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**Application:** Since the Financial Creditor failed to provide evidence of disbursement, the

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Sudhir T De…
- **Respondents:** Dhanada Corporatio…; Sahil S…

## Timeline

- **1986-07-14 — Incorporation of…**: Dhanada Corporation…
- **2008-12-31 — Disbursement o…**: Rs. 3,15,00,000/-…

## 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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