# In the matter of Elexir Distributors Pvt. Ltd. CP (IB) 344-MB-2019

> NCLT judgment dated 2022-03-16. Citation: TCN-2022-NCLT-03725. The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 16 Mar 2022
- **Citation:** TCN-2022-NCLT-03725
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/elexir-distributors-pvt-ltd-cp-ib-344-mb-2019-281bc051

## Summary

### Background

The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Glance Investments (India), the Financial Creditor, against Elexir Distributions Pvt. Ltd., the Corporate Debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) due to alleged default in payment of a Financial Debt. The Financial Creditor claimed that the Corporate Debtor failed to pay an outstanding financial debt of Rs. 2,54,43,151/- as of 16.01.2018, which included a principal amount of Rs. 2,00,00,000/- and interest of Rs. 54,43,151/-. The date of default was 29.10.2018. The loan was initially disbursed in two tranches by Evershine Advisory Services Private Limited, the original lender, and subsequently assigned to the Financial

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## Facts

Glance Investments (India) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Elexir Distributions Pvt. Ltd., seeking to initiate Corporate Insolvency Resolution Process (CIRP). The basis for the petition was the Corporate Debtor's alleged default in payment of a financial debt. The outstanding financial debt amounted to Rs. 2,54,43,151/- as of 16.01.2018, comprising a principal of Rs. 2,00,00,000/- and interest of Rs. 54,43,151/-. The date of default was 29.10.2018. The Financial Creditor submitted that the loan of Rs. 2,00,00,000/- was disbursed in two tranches: Rs. 1,00,00,000/- on 08.05.2015 and another Rs. 1,00,00,000/- on 26.06.2015. The Corporate Debtor had requested a corporate loan to meet working capital requirements in a

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## Issues and analysis

### Issue 1: Whether the petition 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 Tribunal observed that the Financial Creditor had provided sufficient evidence,

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**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial creditor can

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**Application:** In this case, the Financial Creditor provided evidence of the loan agreement,

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Glance Investments…
- **Respondents:** Elexir Distributio…

## Timeline

- **2015-04-15 — Corporate Debtor…**: Elexir Distributions Pvt. Ltd. addressed a letter to the Lender requesting a Corporate…
- **2015-04-30 — Loan Agre…**: Loan Agreement entered into between Evershine Advisory Services Private Limited and…

## 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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