# Pink City Fincap Private Limited vs. Arthmate Tech Private Limited

> NCLT judgment dated 2026-09-10. Citation: TCN-2026-NCLT-01070. Pink City Fincap Private Limited (Financial Creditor) filed a Section 7 application against…

- **Court:** NCLT
- **Order date:** 10 Sept 2026
- **Citation:** TCN-2026-NCLT-01070
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/pink-city-fincap-private-limited-vs-arthmate-tech-private-limited-dgnhr

## Summary

### Background

Pink City Fincap Private Limited (Financial Creditor) filed a Section 7 application against Arthmate Tech Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP), claiming a default on Optionally Convertible Debentures (OCDs) and accrued interest. The Corporate Debtor subsequently filed an interlocutory application (I.A.) seeking dismissal of the Section 7 petition and imposition of a penalty under Section 65 of the IBC, arguing that no financial debt or default existed as the debentures had not matured and the right of early redemption was exclusively vested with the Corporate Debtor.

## Facts

Pink City Fincap Private Limited (Financial Creditor) is a Non Banking Financial Service provider company.

Arthmate Tech Private Limited (Corporate Debtor) also offers similar Non Banking Financial Services and showed interest in working with the Financial Creditor.

A Master Service Agreement was executed between the parties on 21.08.2023.

The Corporate Debtor issued 120 Optionally Convertible Debentures (OCDs) to the Financial Creditor, each valued at Rs. 1,00,000/-.

The Financial Creditor issued a notice dated 16.11.2024 to the Corporate Debtor for redemption of the Optionally Convertible Debentures.

The Financial Creditor claims a principal amount of Rs. 1.2 Crores along with Rs. 7 Lakhs interest is due and payable.

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## Issues and analysis

### Issue 1: Whether there exists a financial debt and default under Section 5(8) and Section 3(12) of the IBC, …

**Ratio:** For a Section 7 application under the IBC, 2016, to be maintainable, there must be a

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**Reasoning:** The Optionally Convertible Debentures (OCDs) were issued on 22.03.2024 with a maturity

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**Interpretation:** A 'financial debt' under IBC requires a present obligation to pay, and

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**Application:** Since the OCDs had not matured and the Financial Creditor had no contractual

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## Parties

- **Judges:** BIDISHA BA…; Rekha Kantilal…
- **Appellants:** Pink City Fincap…; Arthmate Tech…
- **Advocates:** Soorjya G…; Kiran S…; +1 more

## Timeline

- **2023-08-21 — Master Service…**: Master Service Agreement executed between Pink City Fincap Private Limited and Arthmate…
- **2023-12-26 — Board Resolution for…**: Board Resolution passed by the Board of Directors of Corporate Debtor for issuing 20…

## 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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