# In the matter of Emm Bee Fincap Private Limited

> NCLT judgment dated 2025-05-16. Citation: TCN-2025-NCLT-00062. The case involves a petition filed by Creative Capital Services Limited (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 16 May 2025
- **Citation:** TCN-2025-NCLT-00062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/emm-bee-fincap-private-limited-8f6537e0

## Summary

### Background

The case involves a petition filed by Creative Capital Services Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against EMM BEE FINCAP PRIVATE LIMITED (Corporate Debtor/Corporate Guarantor). The Financial Creditor sought to recover a debt of INR 8,48,29,275/- arising from a transaction where the Financial Creditor transferred equity shares to the Principal Borrower, but the Corporate Debtor failed to remit the agreed consideration. The Financial Creditor had previously initiated arbitration proceedings and obtained an award in its favor against the Principal Borrower. The Corporate Debtor admitted to the debt and default in an affidavit.

## Facts

Creative Capital Services Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against EMM BEE FINCAP PRIVATE LIMITED (Corporate Debtor/Corporate Guarantor). The Financial Creditor transferred 18,85,095 equity shares of M/s Emsons Organic Limited (Principal Borrower) to the Corporate Debtor for a consideration of INR 8,48,29,275/-. The Corporate Debtor failed to remit the agreed consideration, leading to a default. A Demand Promissory Note-cum-Corporate Loan Agreement was executed on 12.03.2012, and a subsequent agreement was executed on 18.12.2014, structured as a mortgage loan. A Corporate Guarantee Agreement was also executed in 2014. The Financial

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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 IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The Adjudicating Authority considered the documents and submissions made by both parties

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their debts

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**Application:** The Adjudicating Authority applied Section 7 to the facts of the case and found

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; SUBRATA KUM…
- **Appellants:** Creative Capital…
- **Respondents:** EMM BEE FINCAP…
- **Advocates:** Nakul G…; Muje…; +3 more

## Timeline

- **1994-07-26 — Incorporation of…**: Creative Capital Services…
- **1999-03-10 — Incorporation of…**: EMM BEE FINCAP PRIVATE…

## 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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