# In the matter of Aarvanss Infrastructure Pvt. Ltd. (IB) 441(ND)-2017

> NCLT judgment dated 2018-03-08. Citation: TCN-2018-NCLT-01736. Daimler Financial Services Pvt. Ltd filed a petition under Section 7 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 8 Mar 2018
- **Citation:** TCN-2018-NCLT-01736
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aarvanss-infrastructure-pvt-ltd-ib-441nd-2017-54a0b854

## Summary

### Background

Daimler Financial Services Pvt. Ltd filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Aarvanss Infrastructure Pvt. Ltd, the Corporate Debtor, due to their inability to liquidate a financial debt. The petitioner, a Non-Banking Financial Company, provided financial assistance to the Corporate Debtor for purchasing a Mercedes Benz car. A loan of Rs. 27 Lakhs was granted, and a loan agreement dated 2014-06-30 was executed, with an interest rate of 11.55% per annum, amounting to Rs. 35,67,540, to be repaid in 60 equated monthly installments. The Corporate Debtor failed to adhere to the repayment schedule, leading the Financial Creditor to invoke the Early Termination Quotation. The outstanding debt was Rs. 17,95,032.61.

## Facts

Daimler Financial Services Pvt. Ltd., a Non-Banking Financial Company, provided a loan of Rs. 27 Lakhs to Aarvanss Infrastructure Pvt. Ltd. for the purchase of a Mercedes Benz car. A loan agreement was executed on 2014-06-30, stipulating an interest rate of 11.55% per annum, totaling Rs. 35,67,540, to be repaid in 60 monthly installments. Aarvanss Infrastructure Pvt. Ltd. defaulted on the repayment schedule, leading Daimler Financial Services Pvt. Ltd. to invoke the Early Termination Quotation. The outstanding debt amounted to Rs. 17,95,032.61. Despite being served, Aarvanss Infrastructure Pvt. Ltd. did not appear to contest the insolvency petition. The petition was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016. The relevance of these facts lies

…

## Issues and analysis

### Issue 1: Whether there was a default in repayment of a …

**Ratio:** Section 2(11) of the Insolvency & Bankruptcy Code, 2016, defines 'debt' as a

…

**Reasoning:** The court considered the loan agreement, the statement of account, and the fact that the

…

**Interpretation:** The definition of 'debt' under the Code encompasses any liability or

…

**Application:** In this case, the Corporate Debtor, Aarvanss Infrastructure Pvt. Ltd., failed

…

## Parties

- **Judges:** Ina Mal…; R. VARADH…
- **Appellants:** Daimler Financial…
- **Respondents:** Aarvanss Infrastru…

## Timeline

- **2014-06-30 — Loan Agreement…**: Loan agreement executed between Daimler Financial Services Pvt. Ltd and Aarvanss…
- **2018-03-08 — Order Del…**: Order delivered by the NCLT admitting…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/aarvanss-infrastructure-pvt-ltd-ib-441nd-2017-54a0b854