# In the matter of G V R Infra Projects Ltd. CP-941-IB-2018

> NCLT judgment dated 2018-10-17. Citation: TCN-2018-NCLT-00537. The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 17 Oct 2018
- **Citation:** TCN-2018-NCLT-00537
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/g-v-r-infra-projects-ltd-cp-941-ib-2018-0b873a13

## Summary

### Background

The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s Reliance Capital Limited (Financial Creditor) against M/s.G VR Infra Projects Ltd (Corporate Debtor). The petition was filed due to the Corporate Debtor's default in repaying a loan facility of ₹28 crores availed on 16.09.2015. The Corporate Debtor defaulted on payments starting from 31.05.2017.

## Facts

M/s Reliance Capital Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s.G VR Infra Projects Ltd (Corporate Debtor). The Corporate Debtor availed a loan facility of ₹28 crores on 16.09.2015. The Corporate Debtor executed a Facility Agreement, Deed of Hypothecation, and Deed of Promissory Note in favor of the Petitioner. The Managing Director of the Corporate Debtor executed a Guarantee Agreement. Charges were created in favor of the Petitioner and registered with the Registrar of Companies on 16.09.2015. The Corporate Debtor executed an Addendum to the Deed of Hypothecation agreeing to provide collateral security amounting to ₹6 crores on 01.07.2016. The Corporate Debtor made payments totaling

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, should be …

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

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**Reasoning:** The court found that the Corporate Debtor had defaulted in repaying the loan facility.

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

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**Application:** The court applied Section 7 of the IBC to the facts of the case, noting that

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** M/s Reliance…
- **Respondents:** M/s.G VR Infra…

## Timeline

- **2015-09-16 — Loan Facility…**: Corporate Debtor availed…
- **2015-09-16 — Execution of A…**: Corporate Debtor executed Facility Agreement, Deed of Hypothecation, and Deed of…

## 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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