# In the matter of Lepakshi Heritage Wellness Village Private Limited C.P. (IB) No. 107-BB-2021

> NCLT judgment dated 2022-06-03. Citation: TCN-2022-NCLT-02417. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 3 Jun 2022
- **Citation:** TCN-2022-NCLT-02417
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lepakshi-heritage-wellness-village-private-limited-cp-ib-no-107-bb-2021-a807fdc5

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by M/s. Global Emerging Markets India Limited (Financial Creditor/Petitioner) to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Lepakshi Heritage Wellness Village Private Limited (Corporate Debtor/Respondent). The financial creditor claimed a default of Rs. 25,84,94,000/-. The Corporate Debtor opposed the petition, contending that the Rs. 5 crore which forms the basis of instant proceedings is neither a financial debt in the first place as contemplated u/s 7 of IBC nor the Petitioner is Financial Creditor as contemplated under IBC.

## Facts

M/s. Global Emerging Markets India Ltd. (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Lepakshi Heritage Wellness Village Private Limited (Corporate Debtor) for a default of Rs. 25,84,94,000/-. The Financial Creditor and Lepakshi Science and Technology Park Private Limited (Borrower) had executed an Inter Corporate Deposit (ICD) agreement on 19.03.2012, where Rs. 5,00,00,000/- was forwarded by the Financial Creditor to the Borrower. The ICD was executed in furtherance of a Memorandum of Understanding dated 07.01.2012 between the Financial Creditor and Lepakshi Knowledge Hub Private Limited (Project Proponent). The Corporate Debtor executed a

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## Issues and analysis

### Issue 1: Whether the subject Inter Corporate Deposit was given by the Petitioner/Financial Creditor to the …

**Ratio:** An Inter Corporate Deposit is generally considered a financial debt. The true nature of

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**Reasoning:** The Adjudicating Authority found that the amount received by the Corporate Debtor under

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**Interpretation:** The court interpreted the nature of the transaction based on the Memorandum of

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**Application:** The court rejected the Corporate Debtor's contention that the ICD was part of

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## Parties

- **Judges:** Ajay Kumar…; Manoj Kumar…
- **Respondents:** M/s. Lepakshi…

## Timeline

- **2008-12-22 — Memorandum of…**: Memorandum of Agreement between the Government of Andhra Pradesh and Lepakshi Knowledge…
- **2012-01-07 — Memorandum of…**: Memorandum of Understanding between Financial Creditor and Lepakshi Knowledge Hub Private…

## 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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