# In the matter of Global Credit Capital Limited  & Anr. vs. Sach Marketing Pvt. Ltd. & Anr.

> SC judgment dated 2024-04-25. Citation: TCN-2024-SC-00075. The appeals challenge judgments and orders dated October 7, 2021, and October 29, 2021, passed by…

- **Court:** SC
- **Order date:** 25 Apr 2024
- **Citation:** TCN-2024-SC-00075
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/global-credit-capital-limited-anr-vs-sach-marketing-pvt-ltd-anr-179ae8d6

## Summary

### Background

The appeals challenge judgments and orders dated October 7, 2021, and October 29, 2021, passed by the National Company Law Appellate Tribunal (NCLAT). Civil Appeal No. 1143 of 2022 concerns whether the first respondent is a financial creditor under Section 5(7) of the Insolvency and Bankruptcy Code (IBC). The corporate debtor is M/s. Mount Shivalik Industries Limited. The NCLAT held that the first respondent is a financial creditor. Civil Appeals Nos. 6991-6994 of 2022 address whether the 1st to 4th respondents are financial creditors of the same corporate debtor. The NCLAT allowed the appeals, relying on its judgment in Civil Appeal No. 1143 of 2022.

## Facts

Global Credit Capital Limited & Anr. filed appeals against Sach Marketing Pvt. Ltd. & Anr. concerning whether Sach Marketing is a financial creditor of Mount Shivalik Industries Limited under the IBC. Two agreements dated April 1, 2014, and April 1, 2015, between Mount Shivalik and Sach Marketing involved Sach Marketing acting as a 'Sales Promoter' for Mount Shivalik's beer in Ranchi. Sach Marketing deposited a minimum security of Rs. 53,15,000 with Mount Shivalik, carrying 21% interest per annum. The Oriental Bank of Commerce initiated IBC proceedings against Mount Shivalik. Sach Marketing initially claimed as an operational creditor, then as a financial creditor. The Resolution Professional rejected Sach Marketing's claim as a financial creditor. The NCLT

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## Issues and analysis

### Issue 1: Whether the first respondent is a financial creditor within the meaning of sub-section (7) of …

**Ratio:** A financial debt requires a debt along with interest, disbursed against the consideration

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**Reasoning:** The court referred to Anuj Jain, Interim Resolution Professional for Jaypee Infratech

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**Interpretation:** Clause (f) of sub-section (8) of Section 5 of the IBC is a “catch all” and

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**Application:** In this case, the security deposit paid by the first respondent to the

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## Parties

- **Judges:** ABHAY S…; PANKAJ M…
- **Appellants:** GLOBAL CREDIT…
- **Respondents:** M/s. Mount…; SACH MARKETING…

## Timeline

- **2014-04-01 — Agreement…**: First agreement between the corporate debtor and the first respondent for sales promotion…
- **2015-04-01 — Agreement…**: Second agreement between the corporate debtor and the first respondent for sales…

## 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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