Scorpion Nirman Private Limited Vs Swal Limited (NCLT Kolkata)
Section 7 IBC Petition Admitted as Interest-Bearing Inter-Corporate Loan Held Financial Debt: NCLT Kolkata
The National Company Law Tribunal (NCLT), Kolkata, considered an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Financial Creditor seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for default in repayment of financial debt.
According to the Financial Creditor, the parties executed a Loan Term Sheet on 15.01.2025 for an inter-corporate loan of ₹7 crore to be disbursed in three tranches. Amounts of ₹6.5 crore and ₹15 lakh were disbursed on 29.01.2025 and 21.03.2025, respectively, and the Corporate Debtor acknowledged receipt through letters dated 30.01.2025 and 26.03.2025. The Financial Creditor stated that the Corporate Debtor failed to pay interest, despite repeated reminders. It relied on communications in which the Corporate Debtor confirmed the outstanding interest and attributed non-payment to financial difficulties. Demand notices were issued on several occasions, the loan was recalled on 07.06.2025, and the Financial Creditor claimed the date of default to be 22.06.2025, with ₹6.65 crore and additional interest outstanding.
The Corporate Debtor contended that the transaction was an inter-corporate loan granted in violation of mandatory legal requirements and therefore could not constitute a financial debt under Section 5(8) of the IBC. In rejoinder, the Financial Creditor challenged the authority of the deponent who had affirmed the Corporate Debtor’s reply affidavit, stating that the referred board resolution was not annexed.
