# In the matter of Diaonics Automation (India) Private Limited

> NCLT judgment dated 2023-12-19. Citation: TCN-2023-NCLT-00138. The case involves an application filed by M/s. Odyssey Corporation Ltd. & Anr. (Financial…

- **Court:** NCLT
- **Order date:** 19 Dec 2023
- **Citation:** TCN-2023-NCLT-00138
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/diaonics-automation-india-private-limited-d4526864

## Summary

### Background

The case involves an application filed by M/s. Odyssey Corporation Ltd. & Anr. (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Diaonics Automation (India) Private Limited (Corporate Debtor) for the resolution of an unresolved financial debt amounting to Rs. 7,98,77,141/-. The Financial Creditor claims that the Corporate Debtor defaulted on a loan agreement. The Corporate Debtor argued that the application was not maintainable due to the absence of a Record of Default with an Information Utility.

## Facts

Odyssey Corporation Ltd. & Anr. (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Diaonics Automation (India) Private Limited (Corporate Debtor) due to a default on a loan. The Financial Creditor and Corporate Debtor entered into a Loan Agreement on 23.12.2016. The Financial Creditor advanced Rs. 2,00,00,000/- to the Corporate Debtor in four tranches between 30.12.2016 and 05.01.2017, with a repayment deadline of 28.06.2017 and an interest rate of 30% per annum. The Corporate Debtor executed a Deed of Loan Confirmation on 31.01.2017, acknowledging the debt. The Corporate Debtor made some interest payments but failed to repay the entire loan. A Memorandum of Understanding (MOU) was entered into on 05.07.2017,

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## Issues and analysis

### Issue 1: Whether the petitioner has been able to establish that there is a “Financial Debt" as defined …

**Ratio:** Section 5(8) of the Insolvency and

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**Reasoning:** The court considered the Loan Agreement, Deed of Confirmation, and other documents to

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**Interpretation:** The court interpreted the definition of 'financial debt' under Section 5(8) of

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**Application:** The court applied the definition of 'financial debt' to the facts of the case,

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** M/s. Odyssey…
- **Respondents:** Diaonics Automatio…

## Timeline

- **2016-12-23 — Loan Agre…**: Loan Agreement executed between…
- **2017-01-31 — Deed of Confi…**: Corporate Debtor executed…

## 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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