CIRP admitted on account of financial debt and default

The National Company Law Tribunal, Cuttack Bench, admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 after finding the existence of a financial debt and a clear default in repayment. 

The Tribunal held that disbursements made pursuant to a loan agreement, including payments made directly to vendors on behalf of the borrower, constituted financial debt and that subsequent acknowledgements and part-payments extended the limitation period.