# In the matter of Thukral Electric Bikes Private Limited

> NCLT judgment dated 2024-02-13. Citation: TCN-2024-NCLT-02618. The case involves a petition filed by M/s Capital Trade Links Limited (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 13 Feb 2024
- **Citation:** TCN-2024-NCLT-02618
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/thukral-electric-bikes-private-limited-49ee6808

## Summary

### Background

The case involves a petition filed by M/s Capital Trade Links Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Thukral Electric Bikes Private Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor defaulted on a payment of Rs. 1,05,95,166 as of 17.10.2021. The Financial Creditor provided financing services to medium and small-scale businesses, while the Corporate Debtor was engaged in manufacturing electric rickshaws. The Corporate Debtor, along with M/s. Meerut Enterprises, approached the Financial Creditor for loaning facilities at the retail counter of M/s. Meerut Enterprises. A loan agreement was signed on 01.04.2019

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## Facts

M/s Capital Trade Links Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Thukral Electric Bikes Private Limited (Corporate Debtor), seeking to initiate CIRP. The Financial Creditor claimed a default of Rs. 1,05,95,166 as of 17.10.2021. The Financial Creditor is an RBI-registered NBFC providing financing services. The Corporate Debtor manufactures electric rickshaws. The Corporate Debtor and M/s. Meerut Enterprises approached the Financial Creditor for loaning facilities at the retail counter of M/s. Meerut Enterprises. A loan agreement was signed on 01.04.2019 between M/s Meerut Enterprises, the Financial Creditor, and the Corporate Debtor. The Financial Creditor disbursed loans to customers based on

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## Issues and analysis

### Issue 1: Whether there is a 'debt' owed to the …

**Ratio:** A financial debt must be owed by the corporate debtor to the financial creditor for a

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**Reasoning:** The Adjudicating Authority found that the Tripartite Agreement did not substantiate that

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**Interpretation:** Section 7 of the IBC requires a financial debt owed by the corporate debtor to

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**Application:** In this case, the Adjudicating Authority determined that the debt was not

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; Sanjeev R…
- **Appellants:** M/S.CAPITAL TRADE…
- **Respondents:** M/s Thukral…

## Timeline

- **2014-11-14 — Incorporation of…**: The Corporate Debtor, M/s Thukral Electric…
- **2019-04-01 — Loan Agreemen…**: A Loan Agreement was signed between M/s Meerut Enterprises, Financial Creditor, and the…

## 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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