# In the matter of ED & Tech International Limited C.P. (IB) No. 120-7-HDB-2022

> NCLT judgment dated 2023-05-25. Citation: TCN-2023-NCLT-03201. Lasya Properties, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 25 May 2023
- **Citation:** TCN-2023-NCLT-03201
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ed-tech-international-limited-cp-ib-no-120-7-hdb-2022-9a1f4f36

## Summary

### Background

Lasya Properties, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against ED & Tech International Limited/Corporate Debtor. The application alleges a default on a financial debt of Rs. 1,49,50,000/-, which includes a principal amount of Rs. 1,15,00,000/- and interest at 12% per annum, amounting to Rs. 34,50,000/-.

## Facts

Lasya Properties (Financial Creditor) filed an application against ED & Tech International Limited (Corporate Debtor) under Section 7 of the IBC, 2016. A Loan Agreement dated 20.08.2019 was entered into between the parties, where the Financial Creditor advanced a loan of Rs. 1,15,00,000/- to the Corporate Debtor via bank transfer on 28.08.2019. The Corporate Debtor was liable to pay Rs. 60,00,000/- with 12% interest by 30.09.2020, and the balance of Rs. 55,00,000/- with interest by 31.12.2020. Despite requests, the amounts were not paid. A demand notice was issued on 24.09.2021. The total outstanding liability was Rs. 1,49,50,000/-, including Rs. 34,50,000/- interest. The Corporate Debtor admitted the claim and its default but claimed inability to pay.

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The Adjudicating Authority considered the application and the supporting documents,

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The application was filed by a financial creditor, Lasya Properties, against a

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## Parties

- **Judges:** Venkata Ramakrishn…; Satya Ranjan…
- **Respondents:** ED & Tech…
- **Advocates:** Saini Kesha…; Sandhya…

## Timeline

- **2019-08-20 — Loan Agre…**: The Corporate Debtor and the Financial…
- **2019-08-28 — Bank Tra…**: The Financial Creditor advanced a loan of Rs. 1,15,00,000/- to the Corporate Debtor by…

## 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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