# In the matter of Shree Krishna Vanaspuri Industries Private Limited Company Petition No. (IB)-127 (ND)-2021

> NCLT judgment dated 2022-06-20. Citation: TCN-2022-NCLT-02180. Shivam Agrioils Private Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 20 Jun 2022
- **Citation:** TCN-2022-NCLT-02180
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-krishna-vanaspuri-industries-private-limited-company-petition-no-ib-127-nd-bce233d3

## Summary

### Background

Shivam Agrioils Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against Shree Krishna Vanaspati Industries Private Limited, the corporate debtor. The applicant claimed that the corporate debtor defaulted on repaying a loan of Rs. 10,46,00,000. The corporate debtor argued that the application was barred by limitation and that the disputes were purely contractual. The corporate debtor also stated that the amount was not advanced for the time value of money.

## Facts

Shivam Agrioils Private Limited (the applicant/financial creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against Shree Krishna Vanaspati Industries Private Limited (the respondent/corporate debtor). The applicant claimed that the corporate debtor had availed financial facility from them and defaulted on repaying a sum of Rs. 10,46,00,000. The applicant presented documents, including an agreement to sell dated 19.03.2016 and bank statements, to support their claim. The corporate debtor argued that the application was barred by limitation, the disputes were purely contractual, and the amount was not advanced for the time value of money. The corporate debtor also stated that

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## Issues and analysis

### Issue 1: Whether the amount claimed by the applicant falls …

**Ratio:** A 'financial debt' means a debt along with interest, if any, which is disbursed against

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**Reasoning:** The court reasoned that the amount claimed by the applicant did not fall under the

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

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**Application:** In this case, the court found that the MoUs entered between the parties and the

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## Parties

- **Judges:** SHRI. DHARMINDER…; SUMITAPURKA…
- **Appellants:** Shivam Agrioils…
- **Respondents:** Shree Krishna…

## Timeline

- **2021-01-12 — Resolutio…**: Mr. Puneet Kumar Agarwal, authorized by resolution dated 12.01.2021, preferred the…
- **2014-11-25 — MoU Exec…**: MoU executed between…

## 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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