The absence of a formal agreement and clarity in the nature of transactions prevents the establishment of financial debt, rendering the CIRP application under the IBC inadmissible.

ORDER

[PER: CORAM]

1. This is an application filed on 23.12.2024 by the Applicant- Mr. Pramod Bafna (hereinafter also referred to as “Financial Creditor” or “the Petitioner”), who is the sole proprietor of M/s. Mohanlal Raichand Bafna, against the Respondent- Caprihans India Limited (hereinafter also referred to as “Corporate Debtor”), under Section 7 of the Insolvency & Bankruptcy Code 2016 (in short, ‘the Code’) r/w Rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, seeking commencement of the Corporate Insolvency Resolution Process (‘CIRP’) of the Corporate Debtor, appointment of Interim Resolution Professional (‘IRP) and declaration of moratorium on account of the default in payment of INR 10,09,90,612/- (Rupees Ten Crores Nine Lakhs Ninety Thousand Six Hundred and Twelve Only).

2. On perusal of Part-I of Form 1, it is seen that the present application is filed by Mr. Pramod Bafna, the sole proprietor of M/s. Mohanlal Raichand Bafna. Further, an affidavit in support of the application is affirmed by the above-named proprietor on 16.12.2021.

3. A perusal of Part II of the application in Form 1 reveals that the Respondent/Corporate Debtor i.e. M/s. Caprihans India Limited, is a public limited company having its registered office at 1028, Shiroli, Rajgurunagar, Khed, Pune-410505.

4. Perusal of Part-III of Form 1 reveals that the Applicant has proposed the name of Mr. Udaykumar Bhaskar Bhat to be appointed as the IRP of the Corporate Debtor in the event that the petition gets admitted. The Applicant has also obtained the Written Consent from the proposed IRP above-named, the Certificate of Registration and the Authorisation for Assignment (‘AFA’), the copies of which have been collectively CP(IB) No. 233/MB/2025 Page | 2 annexed to this application as Exhibit ‘B’. Perusal of AFA shows that the authorisation is valid from 28.03.2024 to 30.06.2025.

5. A perusal of Part IV of the application vide Form 1 reveals that the amount claimed to be in default by the Applicant/Financial Creditor is INR 10,09,90,612/- which consists of principal amount of Rs. 4,05,69,014/- and interest amount of Rs. 6,04,21,598/-. As stated in Part IV of the Application, the total amount of debt granted was INR 265,05,16,339/-. The dates of default stated by the Applicant in Part IV of the application are 27.03.2023, 08.12.2023 and 04.11.2024. According to the Applicant, the default occurred on 27.03.2023 when the Corporate Debtor acquired Pharma Packaging Innovations (PPI) division of Bilcare Limited by way of slump sale with effect from 27.03.2023. As per the terms of slump sale the entire outstanding debt of the Financial Creditor was taken over by the Corporate Debtor from Bilcare Limited. The Applicant further states that after accounting for part repayment, the date of default is 08^th December, 2023 which is 10 days from 28.11.2023 i.e. the date of receipt of demand notice dated 15.11.2023 by the Respondent. Further the default occurred on 04.11.2024 i.e. after 7 days from the date of receipt of the recall notice dated 23/10/24 by the Respondent on 28.10.2024.

6. The facts narrated by the Applicant in Part IV of the Application are stated hereinbelow:

i. Bilcare Limited (‘Bilcare’) approached the Financial Creditor and requested to facilitate discounting of invoice/bill raised by Bilcare to its customers/debtors. The said request was made since Bilcare was selling goods by issuing invoices to their customers; the invoice and payment thereunder would involve a credit period. Bilcare was not in a position to finance itself within that credit period. Therefore, Bilcare approached the Applicant-Financial Creditor to provide CP(IB) No. 233/MB/2025 Page | 3 financial debt in the form of working capital. Bilcare specifically sought this arrangement as i