NCLT (New Delhi Bench) : In Vivek Gupta vs. Proactive Plast Pvt. Ltd.

Where promoter of company had given interest free unsecured loan to the company to be used as margin money enabling it to get loan facility from bank which became part of company’s working capital and further promoter agreed not to seek recovery till liability of bank stood extinguished, on company’s failure to repay, promoter could not initiate insolvency resolution process.

The Corporate Debtor submitted that the amount being claimed was not a loan in terms of financial debt, nor was there any agreement to pay interest on such loan and that said loan amount was not repayable on demand as it was part of working capital for procuring financial assistance from bank and further the principal money lender had not made any claim. Thereby, NCLT Bench rejected the petition with costs.

Link : http://164.100.158.181/Publication/New_Delhi_Bench/2017/Others/98.pdf