# In the matter of Adtech Signages India Private Limited IB No. 18-JPR-2018

> NCLT judgment dated 2018-11-30. Citation: TCN-2018-NCLT-00251. Reliance Commercial Finance Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 30 Nov 2018
- **Citation:** TCN-2018-NCLT-00251
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adtech-signages-india-private-limited-ib-no-18-jpr-2018-742427d1

## Summary

### Background

Reliance Commercial Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Adtech Signages India Private Limited, the Corporate Debtor, due to defaults in loan repayment. The loan agreement was initially between Reliance Capital Ltd. and the Corporate Debtor, but Reliance Capital Ltd. merged with Reliance Commercial Finance Ltd. The petition was filed after the Corporate Debtor failed to make payments despite a loan recall notice. The Tribunal proceeded in the absence of the Corporate Debtor, who did not appear despite being notified.

## Facts

Reliance Commercial Finance Limited (the Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Adtech Signages India Private Limited (the Corporate Debtor). The basis of the petition was a loan agreement entered into between Reliance Capital Ltd. and the Corporate Debtor, where the Corporate Debtor availed a loan of Rs. 40 lakhs for the purchase of an Ink Jet Printer, with a repayment schedule of 60 monthly installments totaling Rs. 59,00,280/-. The loan was secured by the asset purchased. Subsequently, Reliance Capital Ltd. merged with Reliance Commercial Finance Ltd. The Corporate Debtor defaulted on the installment payments commencing from 05.10.2016, leading the Financial Creditor to issue a loan recall

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## Issues and analysis

### Issue 1: Whether the petition under Section 7 of the IBC, 2016, is admissible against the Corporate Debtor, …

**Ratio:** Section 7 of the IBC, 2016, allows a financial creditor to initiate the Corporate

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**Reasoning:** The Tribunal noted that the Corporate Debtor had defaulted on the installment payments,

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**Interpretation:** Section 7 of the IBC, 2016, provides a mechanism for financial creditors to

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**Application:** In this case, the Financial Creditor, Reliance Commercial Finance Limited,

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## Parties

- **Judges:** R. VARADH…
- **Appellants:** Reliance Commercia…
- **Respondents:** Adtech Signages…

## Timeline

- **2013-05-08 — Loan Agre…**: Loan agreement entered into between Reliance Capital Ltd. and Adtech Signages India…
- **2013-06-05 — Instalment Payment…**: Instalment payment was to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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