# In the matter of Lion Buildcon Private Limited

> NCLT judgment dated 2024-07-03. Citation: TCN-2024-NCLT-01074. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 3 Jul 2024
- **Citation:** TCN-2024-NCLT-01074
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lion-buildcon-private-limited-2eb3b558

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, by M/s Kaliber Associates Pvt. Ltd. (through its Liquidator, Mr. Mohan Lal Jain) against M/s Lion Buildcon Pvt. Ltd., seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The applicant claims that the corporate debtor defaulted on a financial debt of Rs. 2,50,00,000. The petition was initially dismissed due to the petitioner's absence but was later restored. Several adjournments were granted to allow the corporate debtor to explore settlement possibilities, but no settlement materialized. The Adjudicating Authority considered the submissions of both parties, including arguments regarding the existence of a financial debt, the applicability

…

## Facts

M/s Kaliber Associates Pvt. Ltd., through its Liquidator Mr. Mohan Lal Jain, filed an application under Section 7 of the IBC, 2016, against M/s Lion Buildcon Pvt. Ltd., claiming a default on a financial debt of Rs. 2,50,00,000. The debt was disbursed in two tranches: Rs. 2,00,00,000 on 18.10.2013 and Rs. 50,00,000 on 09.11.2013. The initial petition was dismissed due to the petitioner's absence but was later restored. The Corporate Debtor (CD) sought adjournments for settlement, but no settlement materialized. The Financial Creditor (FC) presented a NeSL report, balance sheets, and bank statements as evidence of the debt and default. The CD argued that there was no financial agreement, no time value of money involved, and questioned the veracity of the NeSL report. The

…

## Issues and analysis

### Issue 1: Whether the debt claimed by the financial creditor qualifies as a 'financial debt' under Section …

**Ratio:** The definition of 'financial debt' under Section 5(8) of the IBC includes a debt along

…

**Reasoning:** The Adjudicating Authority considered the evidence presented by the financial creditor,

…

**Interpretation:** The interpretation of 'financial debt' under Section 5(8) of the IBC is broad

…

**Application:** In this case, the Adjudicating Authority found that the debt claimed by the

…

## Parties

- **Judges:** Sh. Ashok Kumar…; SUBRATA KUM…
- **Appellants:** M/s Kaliber…
- **Respondents:** M/S Lion Buildcon…

## Timeline

- **2023-10-04 — Petition…**: The petition was listed afresh, but there was no appearance on behalf of the Petitioner,…
- **2023-10-30 — RA-175/2023…**: RA-175/2023 was allowed, and the petition…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

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/lion-buildcon-private-limited-2eb3b558