# In the matter of Magicon Impex Private Limited Company Petition No. (IB)-865(ND)-2022

> NCLT judgment dated 2023-07-03. Citation: TCN-2023-NCLT-05386. The Applicant/Financial Creditor, Mr. Surendra Kanaiyalal Shah, filed a petition under Section…

- **Court:** NCLT
- **Order date:** 3 Jul 2023
- **Citation:** TCN-2023-NCLT-05386
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/magicon-impex-private-limited-company-petition-no-ib-865nd-2022-01e5308a

## Summary

### Background

The Applicant/Financial Creditor, Mr. Surendra Kanaiyalal Shah, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against M/s Magicon Impex Private Limited.

## Facts

Mr. Surendra Kanaiyalal Shah, as the Applicant/Financial Creditor, filed a petition under Section 7 of the IBC, 2016 against Magicon Impex Private Limited.

The Applicant and Respondent entered into an agreement dated 25.03.2019, where the Applicant was appointed as the 'Consignment & Freight Agent' for the Gujarat region.

The Applicant made a security deposit of Rs. 70,00,000/- with the Respondent, which was to be refundable and treated as an investment with a 1% monthly return.

The Applicant served a notice of termination on the Respondent on 11.11.2019, and the agreement terminated on 11.12.2019.

The Respondent failed to return the security deposit along with interest, resulting in an outstanding amount of Rs. 1,11,63,151/-.

…

## Issues and analysis

### Issue 1: Whether the 'commission on sale' …

**Ratio:** The 'commission on sale' does not have the time value of money nor is covered under any

…

**Reasoning:** The definition of 'financial debt' under Section 5(8) of IBC 2016 requires the debt to be

…

**Interpretation:** The Adjudicating Authority interpreted the definition of 'financial debt' to

…

**Application:** The Adjudicating Authority applied the definition to the 'commission on sale'

…

## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** Surendra Kanaiyala…
- **Respondents:** Magicon Impex…
- **Advocates:** Gulshan Kr.…; Rajat Sriv…; +1 more

## Timeline

- **2019-02-28 — Agreement Comm…**: Agreement between Applicant…
- **2019-03-25 — Agreement…**: Date of the agreement between the…

## 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-new-delhi/magicon-impex-private-limited-company-petition-no-ib-865nd-2022-01e5308a