# In the matter of Empirical Medi Solutions Private Limited Company Petition No. 848(IB)-MB-V-2020

> NCLT judgment dated 2022-04-20. Citation: TCN-2022-NCLT-03185. The case involves a petition filed by M/s Polaris Healthcare, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 20 Apr 2022
- **Citation:** TCN-2022-NCLT-03185
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/empirical-medi-solutions-private-limited-company-petition-no-848ib-mb-v-2020-955227fe

## Summary

### Background

The case involves a petition filed by M/s Polaris Healthcare, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Empirical Medi Solutions Private Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP) due to a default in repayment of a loan. The Financial Creditor had advanced a loan of Rs. 2,00,000/- to the Corporate Debtor on 31.12.2015, which was later renewed and an additional loan of Rs. 5,00,000/- was disbursed on 22.12.2016. The Corporate Debtor failed to repay the loan despite repeated requests and assurances, leading to the filing of the petition.

## Facts

M/s Polaris Healthcare, the Petitioner/Financial Creditor, advanced a loan of Rs. 2,00,000/- to M/s Empirical Medi Solutions Private Limited, the Corporate Debtor, on 31.12.2015 at an interest rate of 12%. This loan was documented through a Memorandum of Understanding (MoU) dated 28.12.2015. Subsequently, on 22.12.2016, the loan was renewed, and an additional amount of Rs. 5,00,000/- was disbursed to the Corporate Debtor under the same terms and conditions. The Corporate Debtor failed to repay the loan amount, leading the Petitioner to issue a loan recall notice on 14.06.2018, demanding Rs. 8,34,630/-, which included the principal amount of Rs. 7,00,000/- and unpaid interest of Rs. 1,34,630/- calculated up to March 2018. In response, the Corporate Debtor, vide letter

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## Issues and analysis

### Issue 1: Whether the Petitioner, M/s Polaris Healthcare, is a Financial Creditor as defined under the …

**Ratio:** Section 5(8) of the Insolvency and Bankruptcy Code, 2016 defines 'financial debt' as a

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**Reasoning:** The court considered the loan agreement and bank statements provided by the Petitioner,

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**Interpretation:** The term 'financial debt' is interpreted to include any debt disbursed against

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**Application:** In this case, the Petitioner disbursed a loan to the Corporate Debtor with an

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## Parties

- **Judges:** SUCHITRA KANUPARTH…; ANURADHA SANJAY…; +1 more
- **Appellants:** M/s Polaris…
- **Respondents:** M/s Empirical…

## Timeline

- **2015-12-31 — Loan Disbur…**: Petitioner advanced Rs.…
- **2015-12-28 — Memorandum of…**: Parties entered into a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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