# In the matter of SHIVAM INDIA LIMITED

> NCLT judgment dated 2025-08-22. Citation: TCN-2025-NCLT-01234. Adhunik Corporation Limited filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 22 Aug 2025
- **Citation:** TCN-2025-NCLT-01234
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/shivam-india-limited-fcea3f77

## Summary

### Background

Adhunik Corporation Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shivam India Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The petition was initially dismissed by the Adjudicating Authority, but the dismissal was challenged and the case was remanded by NCLAT for fresh consideration.

## Facts

Adhunik Corporation Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shivam India Limited (Corporate Debtor).

The Financial Creditor claimed that it had provided financial assistance to the Corporate Debtor, which constituted a financial debt.

A Memorandum of Agreement (MoA) was executed between the parties on 23.06.2020.

The Corporate Debtor argued that the funds infused were part of a business arrangement and that the debt had been repaid through commissions.

The Financial Creditor issued a notice dated 11.10.2021 to the Corporate Debtor demanding the return of an amount of Rs. 27.85 crore along with interest @18% per annum effective from 01.03.2021.

…

## Issues and analysis

### Issue 1: Whether the debt claimed by Adhunik Corporation Limited qualifies as a 'financial debt' under the …

**Ratio:** The NCLAT held that the financial assistance given by the Appellant has a clear element

…

**Reasoning:** The NCLAT considered the terms of the MoA and the nature of the transactions between the

…

**Interpretation:** The term 'financial debt' under Section 5(8) of the IBC includes debt along

…

**Application:** The Adjudicating Authority applied the NCLAT's finding and concluded that the

…

## Parties

- **Judges:** BIDISHA BA…; Siddharth…
- **Appellants:** Adhunik Corporatio…
- **Respondents:** Shivam India…
- **Other parties:** Jitendra…; Innovative…; +7 more
- **Advocates:** Joy S…; Shaunak…; +6 more

## Timeline

- **2021-10-11 — Demand N…**: Financial creditor issued a notice dated 11.10.2021 to the Corporate Debtor demanding the…
- **2021-11-03 — Institution of CP(IB)…**: C.P. (IB) No. 323/KB/2021 was…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-kolkata/shivam-india-limited-fcea3f77