# In the matter of Fourth Dimension Solutions Ltd. IB-1232-(ND)-2019

> NCLT judgment dated 2019-07-25. Citation: TCN-2019-NCLT-02288. American Express Banking Corporation filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 25 Jul 2019
- **Citation:** TCN-2019-NCLT-02288
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fourth-dimension-solutions-ltd-ib-1232-nd-2019-02437650

## Summary

### Background

American Express Banking Corporation filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Fourth Dimension Solution Ltd. due to alleged default in settling dues amounting to Rs. 2,20,69,803.39/- for credit facilities availed by the Respondent. The application was filed before the National Company Law Tribunal (NCLT), New Delhi.

## Facts

American Express Banking Corporation (the Applicant) filed an application to initiate Corporate Insolvency Resolution Process (CIRP) against Fourth Dimension Solution Ltd. (the Respondent) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The alleged default was in settling dues of Rs. 2,20,69,803.39/- for credit facilities availed by the Respondent. The Respondent had submitted three card member applications dated 18.04.2016 and 21.12.2016 through its employees. The Respondent agreed to be solely liable for all charges incurred on the corporate cards and bound by the American Express Corporate Card Member Agreement. The credit facilities were available under three AEBC Card Nos. 3765-340549-61002, 3765-340798-11000 and 3765-365476-91005. The Applicant

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## Issues and analysis

### Issue 1: Whether the application filed by American Express Banking Corporation under Section 7 of the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court considered the application filed by American Express Banking Corporation, the

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**Interpretation:** Section 7 provides the legal basis for a financial creditor to initiate CIRP if

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**Application:** The Applicant, American Express Banking Corporation, is a financial creditor,

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## Parties

- **Judges:** Ina Mal…; V.K. SUB…
- **Appellants:** American Express…
- **Respondents:** FOURTH DIMENSION…
- **Advocates:** Roopansh P…; Harsh P…

## Timeline

- **2016-04-18 — Card Member Ap…**: First and second card member applications submitted by the Respondent through its…
- **2016-12-21 — Card Member Ap…**: Third card member application submitted by…

## 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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