# In the matter of Digital Travels Private Limited CP 1433 (IB)-MB-2017

> NCLT judgment dated 2019-06-19. Citation: TCN-2019-NCLT-02831. Daimler Financial Services Private Limited filed a petition under Section 7 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 19 Jun 2019
- **Citation:** TCN-2019-NCLT-02831
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/digital-travels-private-limited-cp-1433-ib-mb-2017-9eb53798

## Summary

### Background

Daimler Financial Services Private Limited filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against Digital Travels Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). Daimler Financial Services Private Limited, the petitioner, is in the business of providing financial assistance to its borrowers for purchasing or leasing Mercedes-Benz Passenger Cars and Bharat Benz Commercial Vehicles. They had extended a loan of ₹45,89,000/- to the Director of Digital Travels Private Limited, the corporate debtor, vide Loan-cum-hypothecation Agreement No.10109529 dated 26.3.2014, making the Corporate Debtor a co-borrower. The loan was to be repaid with 12.66% interest per annum over 84 EMIs starting from

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## Facts

Daimler Financial Services Private Limited (the Petitioner) extended a loan of ₹45,89,000/- to Digital Travels Private Limited (the Corporate Debtor) under a Loan-cum-hypothecation Agreement No.10109529 dated 26.3.2014. The loan was to be repaid with 12.66% interest per annum over 84 EMIs from 26.3.2014 to 26.3.2021. The Corporate Debtor defaulted on payments, leading the Petitioner to issue a loan recall notice on 15.2.2016 demanding ₹40,30,305.68. A subsequent notice under Section 271 of the Companies Act, 2013, dated 12.6.2017, demanded ₹39,03,236.47. The Corporate Debtor failed to repay the dues or respond to the notices. The Petitioner annexed a statement of account showing a default exceeding ₹1,00,000/-. The Corporate Debtor did not appear to defend the case

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## Issues and analysis

### Issue 1: Whether the application under sub-section (2) …

**Ratio:** Section 7 of the I&B Code, 2016, allows a financial creditor to initiate CIRP against

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**Reasoning:** The court observed that the application filed by the petitioner was complete, fulfilling

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**Interpretation:** Section 7(2) of the I&B Code requires the application to be complete,

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**Application:** The court determined that the application was complete based on the documents

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## Parties

- **Judges:** V. P. S…; Ravikumar…; +1 more
- **Appellants:** Daimler Financial…
- **Respondents:** Digital Travels…

## Timeline

- **2014-03-26 — Loan Agre…**: Loan-cum-hypothecation Agreement No.10109529 was executed between Daimler Financial…
- **2014-03-26 — EMI Start…**: EMI payments were…

## 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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