# In the matter of Infiniti Metal Products India Limited IBA-451-2020

> NCLT judgment dated 2021-04-27. Citation: TCN-2021-NCLT-02280. The case involves an application filed by M/s. Bharani Commodities Private Limited under…

- **Court:** NCLT
- **Order date:** 27 Apr 2021
- **Citation:** TCN-2021-NCLT-02280
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/infiniti-metal-products-india-limited-iba-451-2020-c2a617f3

## Summary

### Background

The case involves an application filed by M/s. Bharani Commodities Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. Infiniti Metal Products India Limited. The application is based on the Corporate Debtor's alleged default in repaying a financial debt of Rs. 4,70,84,899/- along with interest at 12% per annum as of 10.07.2018. The applicant, being the financial creditor, claims that the corporate debtor defaulted in payment of the loan amount despite reminders for repayment.

## Facts

M/s. Bharani Commodities Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Infiniti Metal Products India Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor defaulted on a financial debt of Rs. 4,70,84,899/- with 12% interest per annum as of 10.07.2018. The Financial Creditor supplied TMT steel bars and angles to the Corporate Debtor. On 20.06.2018, the parties converted Rs. 3,95,67,142 into an unsecured loan with 9% interest per annum, executing a loan agreement. The Corporate Debtor agreed to repay in 12 equal installments from 20.07.2018. The Corporate Debtor defaulted after executing the loan

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The Adjudicating Authority considered the application and the documents submitted by the

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

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**Application:** The Financial Creditor provided sufficient evidence to demonstrate the

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** M/s. Bharani…
- **Respondents:** M/s. Infiniti…; Shri. A.G.…

## Timeline

- **2018-06-20 — Loan Agre…**: Parties decided to convert Rs. 3,95,67,142…
- **2018-07-10 — Default…**: Date as of which the financial…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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