# In the matter of  Hydroxy Systems Private Limited CP (IB) No. 139-7-HDB-2022

> NCLT judgment dated 2023-01-09. Citation: TCN-2023-NCLT-05146. The case involves a petition filed by Needa Green Energy Private Limited (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 9 Jan 2023
- **Citation:** TCN-2023-NCLT-05146
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hydroxy-systems-private-limited-cp-ib-no-139-7-hdb-2022-655ca4ca

## Summary

### Background

The case involves a petition filed by Needa Green Energy Private Limited (Financial Creditor) under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Hydroxy Systems Private Limited (Corporate Debtor) for alleged non-payment of Rs. 1,43,62,668/-, including interest. The Financial Creditor claims to have extended financial assistance to the Corporate Debtor, which the Corporate Debtor disputes.

## Facts

Needa Green Energy Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Hydroxy Systems Private Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor owed Rs. 1,43,62,668/-, including interest, for a financial loan. The Financial Creditor transferred Rs. 65 lakhs to the Corporate Debtor's bank account, and a draft MOU acknowledging the debt was prepared but not signed. Subsequently, the Financial Creditor transferred an additional Rs. 43,59,000/-. The Corporate Debtor denied the debt, claiming the funds were for research and equipment repairs. The Financial Creditor filed a police complaint alleging the Corporate Debtor forcibly took money, which contradicts the loan

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## Issues and analysis

### Issue 1: Whether a financial debt as claimed by the Financial Creditor is due and payable by the Corporate …

**Ratio:** The Adjudicating Authority (NCLT) has to consider the grounds made out by the Corporate

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**Reasoning:** The court reasoned that the Financial Creditor's claim of a financial debt was

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**Interpretation:** The court interpreted Section 7 of the IBC to require the establishment of a

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Needa Green…
- **Respondents:** Hydroxy Systems…

## Timeline

- **2016-01-01 — Insolvency & Bankruptcy…**: The Insolvency & Bankruptcy…
- **2016-03-23 — Financial Creditor…**: Needa Green Energy Private…

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