# In the matter of SOHO LIMITED

> NCLT judgment dated 2025-08-12. Citation: TCN-2025-NCLT-01224. The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Mr.…

- **Court:** NCLT
- **Order date:** 12 Aug 2025
- **Citation:** TCN-2025-NCLT-01224
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/soho-limited-aac8b268

## Summary

### Background

The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Mr. Gyan Chandra Misra, Resolution Professional of Mascot Soho Homes Private Limited (now known as Tresco Homes Private Limited), to initiate Corporate Insolvency Resolution Process (CIRP) against Soho Limited, the Corporate Debtor, for an alleged default amount of Rs. 5,59,24,992/-.

## Facts

Mr. Gyan Chandra Misra, Resolution Professional of Mascot Soho Homes Private Limited (now known as Tresco Homes Private Limited), filed an application under Section 7 of the IBC to initiate CIRP against Soho Limited.

The alleged default amount was Rs. 5,59,24,992/- as of the date of initiation of CIRP.

The applicant claimed the date of default was 21/11/2017.

The Corporate Debtor was registered with the Registrar of Companies, Delhi and Haryana.

The Corporate Debtor was a shareholder of the Financial Creditor/Applicant, having 34% of shareholding during FY 2012-2013.

The Financial Creditor/Applicant received a loan from Corporate Debtor amounting to Rs. 9,62,27,672/-, out of which Rs. 2,45,00,000/- was repaid.

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## Issues and analysis

### Issue 1: Whether the alleged debt falls within the definition of 'Financial Debt' as provided under Section …

**Ratio:** The definition of 'Financial Debt' in Section 5(8) of IBC does not expressly exclude an

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**Reasoning:** The Adjudicating Authority relied on the judgment of the Hon'ble Supreme Court in Orator

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**Interpretation:** The term 'financial debt' should be interpreted to include interest-free loans

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**Application:** In this case, the Financial Creditor extended financial facilities to the

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## Parties

- **Judges:** BACHU VENKAT…; Sanjeev R…
- **Appellants:** Gyan Chandr…
- **Respondents:** Soho Li…
- **Other parties:** B.P. S…; Ranjan…; +7 more
- **Advocates:** Gaurav…; Abhishek…; +2 more

## Timeline

- **2017-11-21 — Date of D…**: The applicant claimed the date…
- **2023-10-16 — Application…**: The present Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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