The National Company Law Tribunal, New Delhi Bench-IV, comprising Manni Sankariah Shanmuga Sundaram (Member-Judicial) and Atul Chaturvedi (Member-Technical), has admitted an application u/s 7 of the IBC seeking initiation of the CIRP against the corporate debtor. The tribunal held that the amount advanced against property can be treated as a “financial debt” u/s 5(8) of the IBC, 2016.
Background of the Case
The applicant, Kaliber Associates Pvt. Ltd., was undergoing liquidation and filed the section 7 IBC application to initiate CIRP of J.R. Modi Associates Pvt. Ltd. for non-payment of Rs. 9.05 Cr.
The applicant contended that the amount was part of a large short-term loan disbursed to the corporate debtor. The…