# In the matter of Aarvanss Infrastructure Pvt. Ltd. (IB)-669(ND)-2019

> NCLT judgment dated 2019-09-17. Citation: TCN-2019-NCLT-01419. Volkswagen Finance Pvt. Ltd., a financing company, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 17 Sept 2019
- **Citation:** TCN-2019-NCLT-01419
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aarvanss-infrastructure-pvt-ltd-ib-669nd-2019-1a04055f

## Summary

### Background

Volkswagen Finance Pvt. Ltd., a financing company, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Aarvanss Infrastructure Pvt. Ltd. The financing company had sanctioned and disbursed loans to the corporate debtor for purchasing luxury vehicles. The corporate debtor defaulted on the repayment schedule, leading to the recall of the loans and the subsequent application for CIRP.

## Facts

Volkswagen Finance Pvt. Ltd., a financing company, provided loans to Aarvanss Infrastructure Pvt. Ltd. for the purchase of luxury vehicles. Aarvanss Infrastructure Pvt. Ltd. defaulted on the loan repayment schedule. Volkswagen Finance Pvt. Ltd. recalled the loans due to the default. The outstanding amount claimed to be in default is Rs. 33,09,824.28/- inclusive of interest and other charges. Volkswagen Finance Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Aarvanss Infrastructure Pvt. Ltd. The Corporate Debtor failed to appear in the proceedings despite being served a notice.

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court noted that the corporate debtor defaulted on loan repayments, and the financial

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover debts from

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**Application:** The court applied Section 7 to the facts, finding that the corporate debtor's

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## Parties

- **Judges:** Ina Mal…; V.K. SUB…
- **Appellants:** Volkswagen…
- **Respondents:** Aarvanss Infrastru…

## Timeline

- **2019-09-17 — Order Del…**: The order was delivered on September 17, 2019, admitting the application under Section 7…
- **2019-11-01 — Next Hea…**: The case is listed for further…

## 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)

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