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

> NCLT judgment dated 2019-09-17. Citation: TCN-2019-NCLT-01420. 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-01420
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aarvanss-infrastructure-pvt-ltd-ib-669nd-2019-627aa06e

## 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 applicant 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 present application.

## Facts

Volkswagen Finance Pvt. Ltd. is a financing company that provides vehicle loans. Aarvanss Infrastructure Pvt. Ltd. requested and received loans from Volkswagen Finance Pvt. Ltd. to purchase luxury vehicles. Aarvanss Infrastructure Pvt. Ltd. defaulted on the loan repayment schedule, leading Volkswagen Finance Pvt. Ltd. to recall the loans. As a result of the default, 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 outstanding amount claimed to be in default is Rs. 33,09,824.28/- inclusive of interest and other charges. The Corporate Debtor did not appear in court after being served 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 the loan repayment schedule, and

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The court applied Section 7 to the facts of the case, where the corporate

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## Parties

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

## Timeline

- **2019-09-17 — Order Del…**: Order delivered on September 17, 2019,…
- **2019-11-01 — Next Hea…**: Case 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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