# In the matter of Mack Star Marketing Private Limited C.P. No. 1621-IBC-MB-2019

> NCLT judgment dated 2021-09-20. Citation: TCN-2021-NCLT-01083. The case involves a Company Petition filed by Suraksha Asset Reconstruction Private Limited,…

- **Court:** NCLT
- **Order date:** 20 Sept 2021
- **Citation:** TCN-2021-NCLT-01083
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mack-star-marketing-private-limited-cp-no-1621-ibc-mb-2019-58c1733f

## Summary

### Background

The case involves a Company Petition filed by Suraksha Asset Reconstruction Private Limited, acting as a trustee of Suraksha ARC-016 Trust (Financial Creditor), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Mack Star Marketing Private Limited (Corporate Debtor). The Financial Creditor alleges that the Corporate Debtor defaulted on payments related to six loan transactions (Term Loans I to VI) executed between the Corporate Debtor and Yes Bank Limited (YBL). Term Loans I & II were repaid, leaving four loans (Term Loans III to VI) in default. Yes Bank assigned these four loans to the Financial Creditor via an Assignment Agreement dated September 29, 2017.

## Facts

Suraksha Asset Reconstruction Private Limited, acting as a trustee of Suraksha ARC-016 Trust, filed a Company Petition against Mack Star Marketing Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The basis for the petition was the Corporate Debtor's alleged default on loan repayments. The genesis of the debt lies in six loan transactions (Term Loans I to VI) between the Corporate Debtor and Yes Bank Limited (YBL). Term Loans I and II were repaid, but Term Loans III, IV, V, and VI were not. The outstanding principal amount as of March 15, 2019, was Rs. 133,48,70,378, with interest of Rs. 26,18,96,795, totaling Rs. 159,67,40,173. Yes Bank assigned the four defaulted loans to Suraksha Asset Reconstruction via an Assignment Agreement

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in …

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

…

**Reasoning:** The NCLT noted that the Corporate Debtor admitted the existence of the debt in its

…

**Interpretation:** The existence of a financial debt and default are prerequisites for initiating

…

**Application:** The NCLT found that the Corporate Debtor had defaulted on its loan repayment

…

## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Suraksha Asset…
- **Respondents:** MACK STAR…; Tine Ab…

## Timeline

- **2017-09-29 — Assignment Ag…**: Yes Bank Ltd (YBL) assigned the four term loans (III to VI) to Suraksha Asset…
- **2019-03-05 — Criminal Compla…**: A criminal complaint regarding the fraud perpetrated on the Corporate Debtor pursuant to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/mack-star-marketing-private-limited-cp-no-1621-ibc-mb-2019-58c1733f