Loan Without Formal Agreement Still a Financial Debt: NCLT Hyderabad

Manik Lal Sanghi Vs Neeraj Pipes Pvt Ltd (NCLT Hyderabad) The National Company Law Tribunal (NCLT), Hyderabad Bench, delivered its order in a company petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) by a financial creditor seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s Neeraj Pipes Private Limited (“Corporate Debtor”). The petition alleged default in repayment of ₹2.63 crore, including interest, as on 5 November 2024. The petitioner, an experienced businessman, stated that he had extended financial assistance of ...