# In the matter of Mariners Buildcon India Limited CP No. (IB)-185-(PB)-2017

> NCLT judgment dated 2017-08-24. Citation: TCN-2017-NCLT-00526. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 24 Aug 2017
- **Citation:** TCN-2017-NCLT-00526
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mariners-buildcon-india-limited-cp-no-ib-185-pb-2017-21649c4a

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against Mariners Buildcon India Limited. Inderpreet Singh, the financial creditor, claims that the corporate debtor failed to repay a loan of Rs. 800,000 given on 29th August 2014, along with an agreed interest of 18% per annum. Despite repeated demands and legal notices, the corporate debtor failed to repay the principal amount or the interest. The corporate debtor acknowledged the debt but cited financial distress due to non-recoveries from customers as the reason for non-payment.

## Facts

Mariners Buildcon India Ltd. (Corporate Debtor) was incorporated on 09.05.2005. Inderpreet Singh (Financial Creditor) provided a temporary unsecured loan of Rs. 800,000 to the Corporate Debtor on 29th August 2014, via RTGS (UTR No. ICICR12014082900014869). The loan carried an interest rate of 18% per annum. The Corporate Debtor acknowledged the loan amount and accrued interest on 30th August 2014. The interest was to be paid quarterly, and the principal amount was to be repaid by 25th February 2015. The Corporate Debtor failed to make any payments towards interest or principal. The Financial Creditor issued a demand notice on 22nd May 2017, which was delivered on 25th May 2017. As of 30th April 2017, the outstanding amount, including principal and interest, was Rs.

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating …

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

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**Reasoning:** The court found that the financial creditor had provided sufficient evidence to

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The court applied Section 7 to the facts of the case and found that the

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## Parties

- **Judges:** R. VARADH…; DeepaKr…
- **Appellants:** Inder Preet…
- **Respondents:** Mariners Buildcon…

## Timeline

- **2005-05-09 — Incorporation of…**: Mariners Buildcon India…
- **2014-08-29 — Loan Disb…**: Inderpreet Singh (Financial Creditor) gave a loan of Rs. 800,000 to Mariners Buildcon…

## 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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