# In the matter of Mobile Constructions Private Limited

> NCLT judgment dated 2025-02-18. Citation: TCN-2025-NCLT-01100. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 18 Feb 2025
- **Citation:** TCN-2025-NCLT-01100
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/mobile-constructions-private-limited-1f59c69a

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Mrs. Vijaylaxmi Ghuwalewala (Financial Creditor/Applicant) to initiate Corporate Insolvency Resolution Process (CIRP) against Mobile Constructions Pvt. Ltd. (Corporate Debtor/Respondent).

## Facts

Mrs. Vijaylaxmi Ghuwalewala filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 to initiate CIRP against Mobile Constructions Pvt. Ltd.

The total amount of default claimed is Rs. 7,20,23,656/-, with the date of default being 02.11.2023.

A Memorandum of Understanding (MOU) was executed on December 10, 2018, between the Applicant and the Corporate Debtor.

The Applicant transferred Rs. 4,08,50,000 into the Corporate Debtor's account.

The Corporate Debtor acknowledged the debt in its audited balance sheets.

The Corporate Debtor failed to make the required payments despite a legal notice.

The Respondent (Corporate Debtor) contended that the amount was part of a larger investment and the MOU was terminated.

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## Issues and analysis

### Issue 1: Whether there exists a financial debt under Section 5(8) of the Insolvency and Bankruptcy Code, …

**Ratio:** The Hon'ble Supreme Court in case of Orator Marketing Pvt Ltd. v. M/s Samtex Desinz Pvt.

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**Reasoning:** The NCLT considered the acknowledgement of debt in the Corporate Debtor's financial

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**Interpretation:** The NCLT interpreted the MOU and financial statements to conclude that a

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**Application:** Applying the Supreme Court's ruling, the NCLT determined that the interest-free

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## Parties

- **Judges:** V.G. B…; Prabhat…
- **Appellants:** Vijaylaxmi…
- **Respondents:** Mobile Constructio…
- **Other parties:** Abhijit Shrikrishn…
- **Advocates:** Shyam Ka…; Saahil…

## Timeline

- **2018-12-10 — Execution…**: A Memorandum of Understanding (MOU) was executed between the Applicant and the Corporate…
- **2019-02-15 — Disbursal o…**: The Corporate Debtor was paid a sum of Rs. 4,08,50,000/- from the period 15.2.2019 to…

## 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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