# In the matter of Pal News Media Pvt. Ltd. (IB) 442(ND)-2017

> NCLT judgment dated 2018-03-08. Citation: TCN-2018-NCLT-01740. Daimler Financial Services Pvt. Ltd filed a petition under Section 7 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 8 Mar 2018
- **Citation:** TCN-2018-NCLT-01740
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pal-news-media-pvt-ltd-ib-442nd-2017-bc2d7c96

## Summary

### Background

Daimler Financial Services Pvt. Ltd filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Pal News Media Pvt. Ltd, the Corporate Debtor, for initiation of Corporate Insolvency Resolution Process due to their inability to liquidate the financial debt. The petitioner, a Non-Banking Financial Company, had provided financial assistance to the Corporate Debtor for purchasing a Mercedes Benz car. A loan of Rupees 65,87,500/- was granted, and the Corporate Debtor purchased a Mercedes Benz GL 350 CDI. A loan agreement dated 26.06.2013 was executed, with an interest rate of 11.54% per annum, amounting to Rs. 86,18,040/- as the Contract Value, to be repaid in 60 Equated Monthly Instalments. The Corporate Debtor failed to adhere to the repayment

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## Facts

Daimler Financial Services Pvt. Ltd. (Petitioner), a Non-Banking Financial Company, provided financial assistance to Pal News Media Pvt. Ltd. (Corporate Debtor) for purchasing a Mercedes Benz car. A loan of Rs. 65,87,500 was granted, and the Corporate Debtor purchased a Mercedes Benz GL 350 CDI. A loan agreement was executed on 2013-06-26, with an interest rate of 11.54% per annum, totaling Rs. 86,18,040 to be repaid in 60 monthly installments. The Corporate Debtor failed to adhere to the repayment schedule, leading the Financial Creditor to invoke the Early Termination Quotation. The outstanding debt was Rs. 48,28,798.99. The Corporate Debtor failed to appear in court to resist the petition. The petition was filed under Section 7 of the Insolvency & Bankruptcy

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## Issues and analysis

### Issue 1: Whether there was a default in repayment of a …

**Ratio:** Section 3(11) of the Code defines 'debt' as a liability or obligation in respect of a

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**Reasoning:** The court noted that the Corporate Debtor failed to adhere to the repayment schedule, and

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**Interpretation:** The definition of 'debt' and 'financial debt' under the IBC, 2016, encompasses

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**Application:** The Corporate Debtor's failure to repay the loan, coupled with the outstanding

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## Parties

- **Judges:** Ina Mal…; SHRI. R VARADHARAJ…
- **Appellants:** Daimler Financial…
- **Respondents:** Pal News Media…

## Timeline

- **2013-06-26 — Loan Agre…**: Loan agreement executed between Daimler Financial Services Pvt. Ltd and Pal News Media…
- **2018-03-08 — Order Del…**: Order delivered by the NCLT admitting…

## 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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