# V.K Mercantile Pvt Ltd Vs Akhrot Developers Private Ltd

> NCLT judgment dated 2025-06-20. Citation: TCN-2025-NCLT-00737. The case involves an application filed by V.K Mercantile Pvt Ltd, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 20 Jun 2025
- **Citation:** TCN-2025-NCLT-00737
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vk-mercantile-pvt-ltd-vs-akhrot-developers-private-ltd-e28413bc

## Summary

### Background

The case involves an application filed by V.K Mercantile Pvt Ltd, the Operational Creditor, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Akhrot Developers Private Ltd, the Corporate Debtor, under Section 9 of the IBC Code, 2016. The alleged default is due to an outstanding balance of Rs. 7,82,99,523/- on account of a loan claimed to be granted to the corporate debtor. The applicant claims to be a Financial Creditor, being a registered Non-Banking Finance Company. The respondent company was incorporated on 13.11.2023 and has its registered office in Kolkata.

## Facts

V.K Mercantile Pvt Ltd, claiming to be a financial creditor, filed an application to initiate CIRP against Akhrot Developers Private Ltd, the corporate debtor, under Section 9 of the IBC Code, 2016. The claim is based on an alleged default of Rs. 7,82,99,523/-. The applicant claims to have granted a loan of Rs. 10,00,00,000/- in two equal tranches to the corporate debtor with interest at 12% per annum, repayable on demand. The receipt of the loan was allegedly confirmed by the corporate debtor in its Balance Confirmation of Accounts for the financial year 01.4.2017 to 31.3.2023. The corporate debtor allegedly defaulted in payment of interest, leading to the issuance of a demand notice dated 27.11.2023. The corporate debtor argued that there was no written loan

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## Issues and analysis

### Issue 1: Whether the alleged loan advanced to respondent Company is financial debt as defined in Section …

**Ratio:** The IBC does not mandate a written agreement to establish financial debt. Section 238 of

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**Reasoning:** The court considered the arguments of both parties and the evidence presented. The court

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**Interpretation:** The court interpreted Section 5(8) of the IBC Code 2016 to mean that a

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**Application:** The court applied the ratio to the facts of the case, noting that the Corporate

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## Parties

- **Judges:** Labh S…; Rekha K…
- **Appellants:** V.K Mercantile…
- **Respondents:** Akhrot Developers…
- **Advocates:** Manju Bhu…; Saunak…; +6 more

## Timeline

- **1956-01-01 — Companie…**: Reference to the Companies Act, 1956, under…
- **2017-04-01 — Financial Yea…**: Start of the financial year for which the Corporate Debtor confirmed the receipt of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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