# In the matter of Siri Longview Tea & Agro Limited I.A (IB) No. 356-KB-2022
in C.P (IB) No. 449-KB-2020

> NCLT judgment dated 2022-05-12. Citation: TCN-2022-NCLT-02768. Oversure Enterprises Private Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 May 2022
- **Citation:** TCN-2022-NCLT-02768
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/siri-longview-tea-agro-limited-ia-ib-no-356-kb-2022-in-cp-ib-no-449-kb-2020-ca580c89

## Summary

### Background

Oversure Enterprises Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Siri Longview Tea & Agro Limited, alleging default on a loan of Rs. 25,00,000/- with 12% interest. The Financial Creditor claimed a total default amount of Rs. 25,25,000/- as of December 31, 2019, with the default date being August 28, 2019. The Corporate Debtor contested the petition, arguing that the transaction doesn't qualify as a 'Financial Debt' and raised concerns about the Financial Creditor's registration with the Reserve Bank of India. The Corporate Debtor also filed an application (I.A. (IB) No. 356/KB/2022) seeking reliefs related to income tax issues and adjustments.

## Facts

Oversure Enterprises Private Limited (Financial Creditor) filed a petition against Siri Longview Tea & Agro Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming a default on a loan. The loan amount was Rs. 25,00,000/- with interest at 12% p.a. The Financial Creditor claimed the total default amount to be Rs. 25,25,000/- as of December 31, 2019, with the date of default being August 28, 2019. The Financial Creditor transferred Rs. 25,00,000/- to the Corporate Debtor on August 3, 2016. The Corporate Debtor issued a cheque for repayment, which was dishonored due to 'funds insufficient'. The Financial Creditor issued a notice under Section 138 of the Negotiable Instruments Act, 1881. The Corporate Debtor argued that the

…

## Issues and analysis

### Issue 1: Whether the transaction between Oversure Enterprises Private Limited and Siri Longview Tea & …

**Ratio:** A 'Financial Debt' requires a debt along with interest, if any, which is disbursed

…

**Reasoning:** The court considered the submissions of both parties and the findings of the Income Tax

…

**Interpretation:** The interpretation of 'Financial Debt' under the IBC requires a genuine lending

…

**Application:** In this case, the court found that the Income Tax Authority's findings cast

…

## Parties

- **Judges:** Rajasekha…; Balraj…
- **Respondents:** Siri Longview Tea…; Oversure Enterpris…
- **Advocates:** Swati Ag…; Shailendr…; +3 more

## Timeline

- **2016-08-03 — Loan Disbur…**: Oversure Enterprises Private Limited transferred Rs. 25,00,000/- to Siri Longview Tea &…
- **2019-07-30 — Cheque I…**: Siri Longview Tea & Agro Limited issued…

## 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/siri-longview-tea-agro-limited-ia-ib-no-356-kb-2022-in-cp-ib-no-449-kb-2020-ca580c89