# In the matter of Harsha Exito Engineering Pvt. Ltd. IA(IBC)-682-CHE-2021 in IBA-471-2020

> NCLT judgment dated 2022-07-08. Citation: TCN-2022-NCLT-01809. Angel Corporate Services filed an application under Section 60(5)(c) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Jul 2022
- **Citation:** TCN-2022-NCLT-01809
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/harsha-exito-engineering-pvt-ltd-iaibc-682-che-2021-in-iba-471-2020-34a76cc7

## Summary

### Background

Angel Corporate Services filed an application under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, seeking to set aside the rejection of their claim by the resolution professional (RP) of Harsha Exito Engineering Pvt Ltd. Angel Corporate Services claimed to have lent Rs. 2,17,50,000 to Harsha Exito Engineering, but the RP rejected the claim due to the absence of a valid loan agreement and satisfactory evidence establishing the intention to pay it as a financial debt. The applicant sought to be inducted as a financial creditor in the Committee of Creditors and requested the Tribunal to direct the RP to re-verify the books of the Corporate Debtor and admit the amount claimed.

## Facts

Angel Corporate Services, an applicant in this case, claimed to be in the business of lending to micro, small, and medium enterprises. In 2019, Mr. B. Dhanraj, the managing director of Harsha Exito Engineering Pvt Ltd (the Corporate Debtor), sought funding from the applicant due to debts with banks and other creditors. The applicant allegedly lent Rs. 2,50,00,000 to the Corporate Debtor. The Corporate Debtor also faced cases before the Tribunal by Kapil Agencies. The applicant transferred Rs. 2,17,50,000 to the Corporate Debtor between October 4, 2019, and October 24, 2019. The Corporate Debtor's finance manager sent an email on January 8, 2020, confirming accounts from August 1, 2019, to December 31, 2019, showing a closing balance of Rs. 2,35,35,846, including

…

## Issues and analysis

### Issue 1: Whether the Resolution Professional was justified in rejecting the claim of the Applicant as a …

**Ratio:** The term 'financial debt' denotes a debt along with interest, disbursed against the

…

**Reasoning:** The Tribunal observed that while the amount was disbursed to the Corporate Debtor, there

…

**Interpretation:** The definition of 'financial debt' requires a clear agreement on the interest

…

**Application:** In this case, the absence of a documented agreement on the interest rate led

…

## Parties

- **Judges:** (Retd.) S.…; SAMEER…
- **Appellants:** Angel Corporate…
- **Respondents:** Harsha Exito…

## Timeline

- **2019-01-01 — Initial C…**: Mr. B. Dhanraj of Harsha Exito Engineering…
- **2019-10-03 — Discussion with…**: Operational Creditor counsel was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/harsha-exito-engineering-pvt-ltd-iaibc-682-che-2021-in-iba-471-2020-34a76cc7