# In the matter of Unicast Autotech Pvt. Ltd. IB-763-(ND)-2021

> NCLT judgment dated 2022-07-08. Citation: TCN-2022-NCLT-01802. Minda Industries Limited, a financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 8 Jul 2022
- **Citation:** TCN-2022-NCLT-01802
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/unicast-autotech-pvt-ltd-ib-763-nd-2021-cf54f458

## Summary

### Background

Minda Industries Limited, a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Unicast Autotech Private Limited, the corporate debtor, due to an alleged default of Rs. 1,19,00,147/-. The financial creditor had extended financial assistance to the corporate debtor through a Business Support Agreement (BSA) to support its operations and potential acquisition of the corporate debtor's Narsapura unit. The corporate debtor failed to honor the terms of the BSA and defaulted on repayment.

## Facts

Minda Industries Limited (MIL), a financial creditor, is a supplier of automotive solutions. Unicast Autotech Private Limited, the corporate debtor, is a private limited company involved in manufacturing aluminum die casts. In December 2020, Unicast Autotech approached Minda Industries to sell its 100% stake in its Narsapura unit. Minda Industries made a non-binding offer on 2021-02-15. The corporate debtor and its promoters failed to honor the terms of the offer and entered discussions with Sandhar Technologies Limited. The promoters of the corporate debtor approached Minda Industries again on 2021-04-10. Minda Industries made a revised indicative non-binding offer on 2021-04-15 for 100% acquisition of the corporate debtor's Narsapura unit, offering INR 3 crores for

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## Issues and analysis

### Issue 1: Whether the debt arising under the Business Support Agreement (BSA) constitutes a 'financial debt' …

**Ratio:** The definition of 'financial debt' under Section 5(8) of the IBC includes a debt along

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**Reasoning:** The tribunal reasoned that the financial assistance provided by Minda Industries to

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**Interpretation:** The interpretation of 'financial debt' is broad and includes any amount raised

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**Application:** The tribunal applied the definition of 'financial debt' to the facts of the

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI. RAHUL…
- **Appellants:** M/s Minda…
- **Respondents:** M/s Unicast…

## Timeline

- **2020-12-01 — Corporate Debtor…**: The Corporate Debtor approached the Financial Creditor seeking to sell its 100% stake in…
- **2021-02-15 — Non-Binding…**: Financial Creditor made a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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