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

> NCLT judgment dated 2018-11-30. Citation: TCN-2018-NCLT-00243. 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-00243
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adtech-signages-india-private-limited-ib-no-18-jpr-2018-e1f121ff

## 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. later merged with Reliance Commercial Finance Ltd. The petitioner claimed that the Corporate Debtor failed to make payments as per the agreed installment schedule, leading to the issuance of a loan recall notice. Despite the notice, no payments were made, prompting the petitioner to initiate proceedings under the IBC.

## 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 initially entered into between Reliance Capital Ltd. and the Corporate Debtor, where Reliance Capital Ltd. later merged with Reliance Commercial Finance Ltd. The principal sum of the loan was Rs. 40 lakhs, with a total payable amount of Rs. 59,00,280 to be repaid in 60 monthly installments. The loan was for the purchase of an Ink Jet Printer, which was offered as security. Installment payments were to commence from June 5, 2013, and end on May 5, 2018. The Corporate Debtor defaulted on payments, leading the

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## Issues and analysis

### Issue 1: Whether the petition under Section 7 of the IBC, 2016, should be admitted against the Corporate …

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

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**Reasoning:** The Tribunal considered the documents and submissions presented by the petitioner, which

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**Interpretation:** Section 7 of the IBC is interpreted to provide a mechanism for financial

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**Application:** In this case, the Tribunal found that the petitioner had established a default

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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 — Installment Payment…**: Installment 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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