# In the matter of Nila Logistics LLP

> NCLT judgment dated 2025-11-25. Citation: TCN-2025-NCLT-01732. Drip Capital INC, a financial creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 25 Nov 2025
- **Citation:** TCN-2025-NCLT-01732
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nila-logistics-llp-c5851385

## Summary

### Background

Drip Capital INC, a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Nila Logistics LLP, the corporate debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The petition pertains to a financial debt arising from a factoring arrangement where Drip Capital purchased receivables from Nila Logistics.

## Facts

Drip Capital INC filed a petition under Section 7 of the IBC against Nila Logistics LLP.

The petition relates to a financial debt arising from a factoring arrangement.

Drip Capital INC purchased receivables from Nila Logistics LLP.

The amount in default is USD 317,760 as of 30.06.2023.

Nila Logistics LLP admitted to the contractual relationship with Drip Capital INC.

Nila Logistics LLP raised concerns regarding FEMA compliance and jurisdiction.

The Corporate Debtor supplied 9600 metric tons of rock boulders to consignees in Maldives.

The Petitioner issued demand notices to the Corporate Debtor to clear outstanding dues.

The Corporate Debtor received 80% remittance against the said invoices which were not paid by the buyers/consignees.

## Issues and analysis

### Issue 1: Whether a financial debt …

**Ratio:** Section 5(8)(e) of the IBC

…

**Reasoning:** The Corporate Debtor availed export credit facility from the Petitioner, and the

…

**Interpretation:** The Adjudicating Authority interpreted the factoring arrangement as a financial

…

**Application:** The Adjudicating Authority applied the definition of financial debt to the

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Drip Capit…
- **Respondents:** Nila Logist…
- **Other parties:** Primus Insolvency…
- **Advocates:** Shri. Dinesh…; Shri. B. Su…

## Timeline

- **2023-03-03 — Purchase…**: Purchase Orders dated 03.03.2023 and 01.04.2023…
- **2023-06-30 — Date of D…**: Date of default is…

## 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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