# In the matter of Rising Buildwell Pvt. Ltd. (IB) 369 (ND)-2017

> NCLT judgment dated 2018-03-08. Citation: TCN-2018-NCLT-01739. Daimler Financial Services Pvt. Ltd filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Mar 2018
- **Citation:** TCN-2018-NCLT-01739
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rising-buildwell-pvt-ltd-ib-369-nd-2017-2df92895

## Summary

### Background

Daimler Financial Services Pvt. Ltd filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Rising Buildwell Pvt. Ltd, the Corporate Debtor, due to their inability to liquidate a 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 agreement was executed on 2015-01-30, with an interest rate of 11.30% per annum, amounting to Rs. 43,49,302/-, to be repaid in 48 equated monthly installments. The Corporate Debtor failed to adhere to the repayment schedule, leading to the petition for initiating the Corporate Insolvency Resolution Process (CIRP).

## Facts

Daimler Financial Services Pvt. Ltd., a Non-Banking Financial Company, provided a loan of Rs. 32,31,000/- to Rising Buildwell Pvt. Ltd. for the purchase of a Mercedes Benz C 200 CDI Sports car. A loan agreement was executed on 2015-01-30, stipulating an interest rate of 11.30% per annum, with the total amount due being Rs. 43,49,302/-, repayable in 48 equated monthly installments of Rs. 58,166/- from 2015-03-02 to 2019-02-02. Rising Buildwell Pvt. Ltd. defaulted on the repayment schedule, despite repeated requests and reminders, including a notice under Section 271(2) of the Companies Act. As of the date of invoking the Early Termination Quotation, the outstanding debt was Rs. 29,11,997.26/-. Rising Buildwell Pvt. Ltd. failed to appear before the NCLT to contest the

…

## Issues and analysis

### Issue 1: Whether Rising Buildwell Pvt. Ltd. defaulted on its financial obligations to Daimler Financial …

**Ratio:** Section 3(11) of the Insolvency and Bankruptcy Code, 2016, defines 'debt' as a liability

…

**Reasoning:** The court observed that the Corporate Debtor failed to adhere to the repayment schedule

…

**Interpretation:** The definition of 'debt' under the IBC is broad and encompasses any liability

…

**Application:** The Corporate Debtor's failure to make payments as per the loan agreement,

…

## Parties

- **Judges:** Ina Mal…; SHRI. R VARADHARAJ…
- **Appellants:** Daimler Financial…
- **Respondents:** Rising Buildwell…

## Timeline

- **2015-01-30 — Loan Agre…**: Loan agreement executed between Daimler Financial Services Pvt. Ltd. and Rising Buildwell…
- **2015-03-02 — Repayment Sta…**: Start date for the…

## 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/rising-buildwell-pvt-ltd-ib-369-nd-2017-2df92895