# In the matter of Mars Remedies Pvt. Ltd. CP(IB) 804 of 2019

> NCLT judgment dated 2022-09-07. Citation: TCN-2022-NCLT-01144. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC)…

- **Court:** NCLT
- **Order date:** 7 Sept 2022
- **Citation:** TCN-2022-NCLT-01144
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mars-remedies-pvt-ltd-cpib-804-of-2019-34fbb850

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) for initiating the Corporate Insolvency Resolution Process (CIRP) against Mars Remedies Pvt Ltd. BDH Industries Ltd, the Financial Creditor, filed the application. The Corporate Debtor had taken the plea of its appeal pending before the Hon'ble Supreme Court, but no stay order was granted. The Hon'ble NCLAT had directed the Adjudicating Authority to pass an order for initiating CIRP against the Corporate Debtor within 15 days.

## Facts

BDH Industries Ltd filed an application under Section 7 of the IBC to initiate CIRP against Mars Remedies Pvt Ltd. The Corporate Debtor, Mars Remedies Pvt Ltd, claimed its appeal was pending before the Supreme Court. However, no stay order was granted. The Hon'ble NCLAT had directed the NCLT to pass an order for initiating CIRP against the Corporate Debtor. A letter dated 27.12.2021 from MRPL to BDH Industries was considered proof of financial assistance. The NCLAT order dated 07.02.2022 directed the Adjudicating Authority to pass order as required under law for initiating CIRP against the Corporate Debtor. The Financial Creditor filed an appeal before Hon'ble NCLAT against the order of this Bench for not considering request of the Financial Creditor to admit the

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## Issues and analysis

### Issue 1: Whether BDH Industries Ltd qualifies as …

**Ratio:** The ratio is based on the definition of a Financial Creditor under the IBC and the

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**Reasoning:** The court relied on the Hon'ble NCLAT's finding that the letter dated 27.12.2021

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**Interpretation:** The interpretation involves understanding the criteria for a Financial Creditor

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**Application:** The court applied the ratio by examining the letter and concluding that it

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## Parties

- **Judges:** Dr.Deepti…; Ajai Das Me…
- **Appellants:** BDH Industr…
- **Respondents:** Mars Remedies Pvt…

## Timeline

- **2022-03-17 — Hearing…**: Hearing before Hon'ble Supreme Court where the Corporate Debtor took plea of its appeal…
- **2022-04-22 — Hearing…**: Hearing before Hon'ble Supreme Court where the Corporate Debtor took plea of its appeal…

## 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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