# In the matter of Holy Heights Infrastructures Pvt Ltd. CP (IB) No.43-ALD-2022

> NCLT judgment dated 2023-02-22. Citation: TCN-2023-NCLT-04500. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Feb 2023
- **Citation:** TCN-2023-NCLT-04500
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/holy-heights-infrastructures-pvt-ltd-cp-ib-no43-ald-2022-f48d83f5

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by KV Foundations India Limited (Financial Creditor) against Holy Heights Infrastructures Pvt Ltd (Corporate Debtor). The Financial Creditor claims that it advanced a loan of ₹6,92,77,000 to the Corporate Debtor, which the Corporate Debtor failed to repay, leading to default. The Corporate Debtor acknowledges the debt but disputes its validity, claiming it was a voluntary financial assistance routed through various entities by Sh. Ashok Kumar Gupta.

## Facts

KV Foundations India Limited, a non-banking financial company, claimed to have advanced a loan of ₹6,92,77,000 to Holy Heights Infrastructures Pvt Ltd for 12 months with 12% p.a. interest, with a loan agreement executed on 2019-01-10. The loan was disbursed between 2019-01-11 and 2019-01-23. The Corporate Debtor allegedly acknowledged the debt in its balance sheets for 2019-20, 2020-21, and 2021-22. As of 2022-03-31, the total outstanding amount was ₹9,12,56,747. A legal notice was served on 2022-04-11 demanding repayment. The Corporate Debtor acknowledged the debt in its reply dated 2022-04-25 but refused to pay, claiming the loan was advanced by Sh. Ashok Kumar Gupta through various entities. The Corporate Debtor also alleged that the loan agreement was forged and

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## Issues and analysis

### Issue 1: Whether there exists a valid financial debt owed by …

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

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**Reasoning:** The NCLT considered the loan agreement, the Corporate Debtor's balance sheets

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**Interpretation:** The NCLT interpreted Section 5(8) broadly to include debts acknowledged by the

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**Application:** The NCLT applied the definition of 'financial debt' to the facts of the case,

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** K V FOUNDATIONS…
- **Respondents:** HOLY HEIGHTS…

## Timeline

- **2019-01-10 — Loan Agreement…**: Loan agreement executed between KV Foundations India Limited and Holy Heights…
- **2019-01-11 — Loan Disbursem…**: Disbursement of the loan amount by KV Foundations India Limited to Holy Heights…

## 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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