# In the matter of Premier Security and Detective Bureau Private Limited IBA-879-2019

> NCLT judgment dated 2019-12-16. Citation: TCN-2019-NCLT-00148. The case involves an application filed by Daimler Financial Services India Private Limited…

- **Court:** NCLT
- **Order date:** 16 Dec 2019
- **Citation:** TCN-2019-NCLT-00148
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/premier-security-and-detective-bureau-private-limited-iba-879-2019-0a15681b

## Summary

### Background

The case involves an application filed by Daimler Financial Services India Private Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against Premier Security & Detective Bureau Private Limited (Corporate Debtor). The Corporate Debtor allegedly defaulted in repaying a loan amount of ₹74,16,705.31 as of 26.06.2019. The loan was taken for the purchase of a second-hand Mercedes-Benz car, with a loan agreement dated 16.03.2018, stipulating repayment within 48 months at 11% interest.

## Facts

Daimler Financial Services India 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 Premier Security & Detective Bureau Private Limited (Corporate Debtor). The Corporate Debtor defaulted on a loan of ₹74,16,705.31 as of 26.06.2019. The loan agreement, dated 16.03.2018, was for ₹72 Lakhs to purchase a second-hand Mercedes-Benz, repayable in 48 months at 11% interest. A Deed of Hypothecation was also executed. The Financial Creditor presented a statement of accounts showing the Corporate Debtor failed to pay EMIs from 13.05.2018. A recall notice was issued on 03.08.2018, demanding ₹74,63,170.33. The Corporate Debtor argued that the

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has proved the existence of debt and default on the part of the …

**Ratio:** The legal principle applied is that if a financial creditor proves the existence of a

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**Reasoning:** The NCLT reasoned that the Financial Creditor presented sufficient evidence, including

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**Interpretation:** The interpretation of Section 7 of the IBC is that upon proof of debt and

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**Application:** In this case, the Financial Creditor provided the loan agreement, statement of

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** M/s. Daimler…
- **Respondents:** M/s.Premier…

## Timeline

- **2016-01-01 — Insolvency and…**: The Insolvency and Bankruptcy…
- **2018-03-16 — Loan Agre…**: Loan Agreement executed between Daimler Financial Services India Private Limited and…

## 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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