# In the matter of SHRIYA OVERSEAS PRIVATE LIMITED

> NCLT judgment dated 2025-05-09. Citation: TCN-2025-NCLT-01074. Fashion Suitings Private Limited, a Financial Creditor, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 9 May 2025
- **Citation:** TCN-2025-NCLT-01074
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/shriya-overseas-private-limited-257361e9

## Summary

### Background

Fashion Suitings Private Limited, a Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shriya Overseas Private Limited, the Corporate Debtor, for a default of Rs. 2,70,33,417/- as on 31.03.2023.

## Facts

Fashion Suitings Private Limited disbursed an unsecured loan of ₹1.5 crores to Shriya Overseas Private Limited on 22.03.2016.

The loan carried an interest rate of 15% per annum, compounded quarterly.

Interest was regularly paid until 31.03.2019, as evidenced by Form 26AS and ledger entries.

No payments were made after 31.03.2019.

In April 2021, Mrs. Ruby Mehra, a director of Shriya Overseas Private Limited, issued a letter acknowledging the outstanding debt and assured repayment by 30.09.2021.

The Financial Creditor filed the petition on 21.09.2023, claiming a default of Rs. 2,70,33,417/- as on 31.03.2023.

The Corporate Debtor argued that there was no written loan agreement and the demand did not constitute a 'Financial Debt'.

## Issues and analysis

### Issue 1: Whether the debt qualifies as a 'Financial Debt' under Section 5(8) of the Insolvency and …

**Ratio:** The debt qualifies as a 'Financial

…

**Reasoning:** The Corporate Debtor regularly paid interest until 31.03.2019, and the Corporate Debtor's

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**Interpretation:** The elements of 'financial debt' as contemplated under Section 5(8) of the Code

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**Application:** The Adjudicating Authority considered the banking instruments, tax records,

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; ATUL CHAT…
- **Appellants:** Fashion Suitings…
- **Respondents:** Shriya Overseas…
- **Other parties:** Ruby M…; Sourabh M…
- **Advocates:** NPS Ch…; Sujoy D…; +3 more

## Timeline

- **2016-03-22 — Loan Disbur…**: Fashion Suitings Private Limited disbursed an unsecured loan of ₹1.5 crores to Shriya…
- **2019-03-31 — Cessation of Interest…**: Interest payments…

## 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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