# In the matter of Gracious Portfolio Private Limited

> NCLT judgment dated 2024-12-20. Citation: TCN-2024-NCLT-00005. Sital Leasing and Finance Limited, the applicant/financial creditor, filed a petition under…

- **Court:** NCLT
- **Order date:** 20 Dec 2024
- **Citation:** TCN-2024-NCLT-00005
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gracious-portfolio-private-limited-5a607e5a

## Summary

### Background

Sital Leasing and Finance Limited, the applicant/financial creditor, filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, against Gracious Portfolio Private Limited, the respondent/corporate debtor, for alleged default in repayment of a financial debt amounting to INR 1,23,23,113/- as on 31.07.2023. The applicant is a Non-Banking Financial Institution (NBFC). The corporate debtor failed to make appearances before the Adjudicating Authority despite notices. The Adjudicating Authority proceeded ex-parte.

## Facts

Sital Leasing and Finance Limited (Applicant), a Non-Banking Financial Institution, filed a petition against Gracious Portfolio Private Limited (Respondent/Corporate Debtor) under Section 7 of the Insolvency & Bankruptcy Code, 2016, for a default of INR 1,23,23,113/- as of 31.07.2023. The Respondent is incorporated in 1996 under the Companies Act, 1956. The Respondent's director applied for a business loan to expand their business of Securities and Investments in India. The Applicant granted a business loan vide Sanction Letter dated 15.03.2023. A Business Loan Agreement was executed on 07.04.2023 for Rs. 1,20,00,000/- for three months, disbursed in two tranches. The interest rate was 12% per annum. The Respondent paid Rs. 10,061/- as interest as per the loan

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency & Bankruptcy Code, 2016 is …

**Ratio:** Section 3 of the Insolvency & Bankruptcy Code, 2016, specifically excludes financial

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**Reasoning:** The Adjudicating Authority relied on the explicit exclusion of financial service

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**Interpretation:** The interpretation of Section 3(7) of the IBC, along with relevant case laws,

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**Application:** In this case, the Respondent is a registered NBFC with the Reserve Bank of

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** Sital Leasing and…
- **Respondents:** Gracious Portfolio…

## Timeline

- **2023-03-15 — Sanction Lett…**: Applicant granted a business loan vide…
- **2023-04-07 — Business Loan…**: Applicant executed a Business Loan…

## 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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