R. Srikant Ayyer Vs Neogreen Agriculture LLP (NCLT Mumbai)
The NCLT Mumbai considered a Section 7 application filed by Mr. R. Srikant Ayyer, Financial Creditor, against M/s. Neogreen Agriculture LLP, Corporate Debtor, seeking initiation of Corporate Insolvency Resolution Process. The Financial Creditor stated that Rs.20,00,000/- had been disbursed to the Corporate Debtor under an Investment Agreement and Rs.30,00,000/- had been disbursed to Neogreen Ventures Limited, an associate/group entity, towards an alleged Compulsorily Convertible Preference Share investment. By applying interest, the total amount claimed was Rs.1,02,28,590/-.
The Financial Creditor contended that the Corporate Debtor and Neogreen Ventures Limited operated as a single economic entity and were jointly and severally liable for the amounts. The Tribunal noted from the Applicant’s own pleadings that the amount claimed against the Corporate Debtor was Rs.40,93,970/-, while the claim against Neogreen Ventures Limited was Rs.61,34,620/-.
The Tribunal considered Sections 3(8), 4 and 7 of the Insolvency and Bankruptcy Code, 2016. It noted that the minimum default threshold had been increased to Rs.1 crore by Notification No. S.O. 1205(E) dated 24.03.2020. The Tribunal held that dues payable by two separate corporate debtors could not be clubbed to satisfy the threshold for initiating CIRP against either or both entities. The Applicant had also failed to produce any guarantee deed or other agreement/undertaking establishing that the Corporate Debtor was liable for the dues of its group company.
