# In the matter of GMV Agencies Private Limited C.P. (IB) No. 4353-NCLT-MB-2018

> NCLT judgment dated 2019-09-18. Citation: TCN-2019-NCLT-01391. Shriram City Union Finance Limited, the Financial Creditor/Applicant, filed an application…

- **Court:** NCLT
- **Order date:** 18 Sept 2019
- **Citation:** TCN-2019-NCLT-01391
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gmv-agencies-private-limited-cp-ib-no-4353-nclt-mb-2018-7bbb4490

## Summary

### Background

Shriram City Union Finance Limited, the Financial Creditor/Applicant, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) against GMV Agencies Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The application was filed due to a default in payment of a loan agreement.

## Facts

Shriram City Union Finance Limited (Financial Creditor) and GMV Agencies Private Limited (Corporate Debtor) entered into a loan agreement on 07.10.2016, where the Financial Creditor provided financial assistance of ₹30,00,000 to the Corporate Debtor. The loan was to be repaid in 24 EMIs of ₹1,51,956 from 05.11.2016 to 05.10.2018. The Corporate Debtor made initial payments but defaulted starting with the 4th EMI from 05.02.2017, and the issued Post Dated Cheques (PDCs) bounced. The Financial Creditor issued a Demand-cum-Insolvency Notice on 03.10.2018, but the Corporate Debtor did not reply. As of 30.09.2018, the amount due was ₹41,51,603. The application was filed claiming a total default of ₹41,51,603/-. The last payment made by the Corporate Debtor was on 06.12.2016.

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the I&B Code, 2016 is complete and deserves to be …

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

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**Reasoning:** The court found that the application was complete, filed under the proper form, and the

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The court applied Section 7 to the facts of the case, finding that all the

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## Parties

- **Judges:** Mr V.P.…; Mr Rajesh…; +1 more
- **Appellants:** Shriram City…
- **Respondents:** Gmv Agencies…

## Timeline

- **2016-10-07 — Loan Agre…**: Shriram City Union Finance Limited and GMV Agencies Private Limited entered into a loan…
- **2016-09-23 — Board Reso…**: Corporate Debtor passed a Board…

## 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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