# In the matter of Rathod Pharmachem Private Limited CP (IB) 110-NCLT-AHM-2021

> NCLT judgment dated 2022-12-23. Citation: TCN-2022-NCLT-00048. Naman Global Impex Private Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 23 Dec 2022
- **Citation:** TCN-2022-NCLT-00048
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rathod-pharmachem-private-limited-cp-ib-110-nclt-ahm-2021-74347da3

## Summary

### Background

Naman Global Impex Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Rathod Pharmachem Private Limited. The applicant claimed that Rs. 1.00 crore was paid to the corporate debtor as equity share application money, but the shares were not allotted, and the amount was not refunded. The corporate debtor contended that the amount was not intended as equity and that the applicant failed to provide additional funds as promised, leading to project delays.

## Facts

Naman Global Impex Private Limited (the applicant) paid Rs. 1.00 crore to Rathod Pharmachem Private Limited (the corporate debtor) on 2020-11-11 as equity share application money. The shares were not allotted within 60 days, and the amount was not refunded within 15 days after the expiry of the 60-day period. The applicant claimed eligibility to receive Rs. 1,04,99,726/- including interest at 12% per annum. The corporate debtor contended that the amount was not intended as equity, the applicant never signed the share application form, and the applicant failed to provide additional funds as promised. The corporate debtor also argued that the applicant is not a financial creditor and the debt is not a financial debt under the IBC. The applicant argued that the respondent

…

## Issues and analysis

### Issue 1: Whether the amount paid by the applicant to the corporate debtor as share application money …

**Ratio:** Share application money, in the absence of allotment of shares, does not fall under the

…

**Reasoning:** The NCLT relied on the decision of Hon'ble NCLAT, which held that share application

…

**Interpretation:** Section 5(8) of the IBC defines 'financial debt' as a debt along with interest,

…

**Application:** In this case, the applicant paid share application money, but the shares were

…

## Parties

- **Judges:** DEEPTI M…; Ajai Das Me…
- **Appellants:** Naman Global…
- **Respondents:** Rathod Pharmachem…

## Timeline

- **2020-11-11 — Payment of Share…**: Naman Global Impex Private Limited paid Rs. 1.00 crore to Rathod Pharmachem Private…
- **2021-06-09 — Board Reso…**: Board Resolution dated 2021-06-09 authorizing Mr. Sanjaykumar Sakaria to initiate…

## 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)

---

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/rathod-pharmachem-private-limited-cp-ib-110-nclt-ahm-2021-74347da3