# In the matter of Takshashila Corporation LLP

> NCLT judgment dated 2023-10-04. Citation: TCN-2023-NCLT-01410. Elate Investments & Holdings Private Limited filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 4 Oct 2023
- **Citation:** TCN-2023-NCLT-01410
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/takshashila-corporation-llp-aa32eea6

## Summary

### Background

Elate Investments & Holdings Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Takshashila Corporation LLP. The application was based on a default in repayment of a short-term loan. The Financial Creditor claimed that the Corporate Debtor defaulted on an amount of Rs.2,69,07,723/-, which included the principal amount of Rs.2,50,00,000/- and interest of Rs.19,07,723/-. The Corporate Debtor contested the application, arguing that the Applicant was not a Financial Creditor, the motive of the Application was to disrupt the affairs of the Respondent,

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## Facts

Elate Investments & Holdings Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Takshashila Corporation LLP (Corporate Debtor). The application was filed on 05.01.2023. The Financial Creditor had granted a total amount of Rs.9,50,00,000/- to the Corporate Debtor between 2018 and 2020. The first disbursement was made on 27.09.2018, and the last disbursement was made on 07.10.2020. The Corporate Debtor defaulted for an amount of Rs.2,69,07,723/-, which included the principal amount of Rs.2,50,00,000/- and interest of Rs.19,07,723/-. A Loan Agreement dated 29.09.2018 was entered into between the parties, with an interest rate of 15%

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Adjudicating Authority considered the provisions of Section 7 of the IBC and Rule 4

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**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to

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**Application:** In this case, the Financial Creditor, Elate Investments & Holdings Private

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Elate Investments…
- **Respondents:** Takshashila…

## Timeline

- **2018-09-27 — First Disbu…**: The first disbursement of the loan…
- **2018-09-29 — Loan Agre…**: A Loan Agreement was entered into between Elate Investments & Holdings Private Limited…

## 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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