# In the matter of Jouelana Construction Private Limited

> NCLT judgment dated 2025-03-18. Citation: TCN-2025-NCLT-00350. Umaveer Buildcon Private Limited, the Financial Creditor/Applicant, filed a petition under…

- **Court:** NCLT
- **Order date:** 18 Mar 2025
- **Citation:** TCN-2025-NCLT-00350
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jouelana-construction-private-limited-1d2cc941

## Summary

### Background

Umaveer Buildcon Private Limited, the Financial Creditor/Applicant, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jouelana Construction Private Limited (formerly known as Gold Star Builders and Developers Private Limited), the Corporate Debtor/Respondent/JCPL. The Corporate Debtor approached the Financial Creditor in January 2024 for an intercorporate deposit of Rs. 1,10,00,000. An Inter-Corporate Deposit/Loan Facility Agreement was executed on 01/02/2024 with an interest rate of 15% p.a. and a maturity date of 31/07/2024. The Corporate Debtor failed to repay the loan amount, leading to the issuance of loan recall notices on 13/08/2024 and 21/08/2024. The Corporate Debtor

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## Facts

Umaveer Buildcon Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jouelana Construction Private Limited (Corporate Debtor). The Corporate Debtor approached the Financial Creditor in January 2024 for an intercorporate deposit of Rs. 1,10,00,000. An Inter-Corporate Deposit/Loan Facility Agreement was executed on 01/02/2024 with an interest rate of 15% p.a. and a maturity date of 31/07/2024. The Corporate Debtor failed to repay the loan amount by the maturity date, resulting in a default. The Financial Creditor issued loan recall notices on 13/08/2024 and 21/08/2024, but the Corporate Debtor still failed to repay. The total amount of default

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## Issues and analysis

### Issue 1: Whether there exists a financial debt as defined under the Insolvency and Bankruptcy Code, 2016, …

**Ratio:** A financial debt exists when money is borrowed against the payment of interest and

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**Reasoning:** The NCLT found that the Corporate Debtor had borrowed money from the Financial Creditor

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**Interpretation:** The existence of a formal loan agreement is not always necessary to prove the

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**Application:** In this case, the NCLT determined that the Corporate Debtor had borrowed money

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## Parties

- **Judges:** V. G. Bisht…; SH. PRABHAT…
- **Appellants:** Umaveer Buildcon…
- **Respondents:** Jouelana Construct…

## Timeline

- **2024-01-01 — Corporate Debtor…**: Corporate Debtor approached the Financial Creditor for an intercorporate deposit of Rs.…
- **2024-02-01 — Loan Agreement…**: Inter-Corporate Deposit/Loan Facility Agreement was executed with an interest rate of 15%…

## 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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