# In the matter of DSC Motors Private Limited IBA-1433-2019

> NCLT judgment dated 2021-09-30. Citation: TCN-2021-NCLT-00942. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 30 Sept 2021
- **Citation:** TCN-2021-NCLT-00942
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dsc-motors-private-limited-iba-1433-2019-9db6db8b

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 by Tanuja A Jain and Rekha S Jain, who are the 1st and 2nd applicants respectively, against DSC Motors Private Limited, the Corporate Debtor. The application was filed on 3rd October 2019. The Corporate Debtor was incorporated on 21.11.1997 and is situated in Chennai. The applicants claim that the Corporate Debtor owes them a sum of Rs.6,92,400/- including interest.

## Facts

Tanuja A Jain and Rekha S Jain filed an application under Section 7 of the IBC against DSC Motors Private Limited, claiming a debt of Rs.6,92,400/- including interest. The application was filed on October 3, 2019. The applicants provided Demand Promissory Notes dated 17.11.2017 as evidence. The Corporate Debtor made part payments via cheques between January and May 2018, totaling Rs.80,000/- to the 1st applicant and Rs.3,20,000/- to the 2nd applicant. The Corporate Debtor failed to appear despite being served notice via newspaper publication. The applicants are considered Financial Creditors who granted a loan to the respondent, establishing a financial debt and default.

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC, 2016 is maintainable before the Adjudicating …

**Ratio:** The application was filed on 3rd October 2019, prior to the amendment made in the IBC,

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**Reasoning:** The Tribunal reasoned that since the application was filed before the amendment to the

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**Interpretation:** The interpretation is based on the timing of the application's filing relative

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**Application:** Since the application was filed before the amendment, the Tribunal has the

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** Tanuja A…
- **Respondents:** DSC Motors…; Rekha S…

## Timeline

- **1997-11-21 — Incorporation of…**: DSC Motors Private…
- **2017-11-17 — Demand Promiss…**: Demand Promissory Note…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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