# In the matter of Nipoon Investment & Finance Company Pvt. Ltd. CP (IB) - 3063-I&BP-MB-2018

> NCLT judgment dated 2019-02-18. Citation: TCN-2019-NCLT-04821. Religare Finvest Limited (the 'Petitioner') initiated Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 18 Feb 2019
- **Citation:** TCN-2019-NCLT-04821
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nipoon-investment-finance-company-pvt-ltd-cp-ib-3063-ibp-mb-2018-63145c33

## Summary

### Background

Religare Finvest Limited (the 'Petitioner') initiated Corporate Insolvency Resolution Process (CIRP) against Nippon Investment and Finance Company Private Limited (the 'Corporate Debtor') due to a default in repayment of a facility amounting to Rs. 6,29,20,138/-. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Petitioner had granted a loan of Rs. 30 crores to the Corporate Debtor on 17.06.2014 against a Securities Agreement dated 25.06.2014. The Corporate Debtor defaulted in making payments towards the liability.

## Facts

Religare Finvest Limited ('Petitioner') granted a loan of Rs. 30 crores to Nippon Investment and Finance Company Private Limited ('Corporate Debtor') on 17.06.2014, secured by a Securities Agreement dated 25.06.2014. The Corporate Debtor defaulted on repayments, leading to a total outstanding of Rs. 6,29,20,138/-. The Petitioner issued a notice on 19.09.2017, recalling the entire balance of Rs. 5,42,00,000/- as on 18.09.2017. Attempts to serve the petition to the Corporate Debtor's registered office failed, resulting in substituted service via newspaper publication. The Corporate Debtor was absent during the hearings. The statement of account confirmed the claimed amount and the defaults in payment of installment dues, including penal interest.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making the payment towards the liability to the …

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

…

**Reasoning:** The Adjudicating Authority, upon reviewing the documents, found that the Corporate Debtor

…

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

…

**Application:** The Corporate Debtor's failure to repay the loan, as evidenced by the statement

…

## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Religare Finvest…
- **Respondents:** Nippon Investment…; Nippon Investment…

## Timeline

- **2014-06-17 — Loan Gra…**: The Petitioner granted a loan of Rs.…
- **2014-06-25 — Securities Ag…**: Securities Agreement was executed between…

## 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)

---

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/nipoon-investment-finance-company-pvt-ltd-cp-ib-3063-ibp-mb-2018-63145c33