# In the matter of Sharda Gems and Jewels Pvt. Ltd. (IB) 372(ND)-2017

> NCLT judgment dated 2018-03-08. Citation: TCN-2018-NCLT-01735. The petition was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking…

- **Court:** NCLT
- **Order date:** 8 Mar 2018
- **Citation:** TCN-2018-NCLT-01735
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sharda-gems-and-jewels-pvt-ltd-ib-372nd-2017-7373f9f6

## Summary

### Background

The petition was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process. The petitioner, a Non-Banking Financial Company, claimed that the respondent/corporate debtor was unable to liquidate its financial debt. The corporate debtor had approached the financial creditor for a loan to purchase a Mercedes Benz car. A loan agreement was executed on 2016-08-19, with an interest rate of 11.09% per annum, amounting to Rs. 39,14,417/-, to be repaid in 36 equated monthly installments. The corporate debtor failed to adhere to the repayment schedule, leading to the invocation of the Early Termination Quotation by the financial creditor.

## Facts

Daimler Financial Services Pvt. Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Sharda Gems and Jewels Pvt. Ltd. The petitioner, a Non-Banking Financial Company, provided financial assistance to the respondent for purchasing a Mercedes Benz car. A loan of Rs. 31,27,606/- was granted, and a loan agreement was executed on 2016-08-19, with an interest rate of 11.09% per annum, totaling Rs. 39,14,417/-, to be repaid in 36 monthly installments. The respondent failed to adhere to the repayment schedule, despite repeated requests and reminders, including a notice under Section 271(2) of the Companies Act. The outstanding debt amounted to Rs. 35,99,444.20/-. The respondent failed to appear in court to resist the petition.

## Issues and analysis

### Issue 1: Whether the petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 is …

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

…

**Reasoning:** The court observed that the petitioner had filed the petition in the required format and

…

**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

…

**Application:** The court applied Section 7 to the facts of the case, finding that the

…

## Parties

- **Judges:** Ina Mal…; SHRI. R VARADHARAJ…
- **Appellants:** Daimler Financial…
- **Respondents:** Sharda Gems and…

## Timeline

- **2016-08-19 — Loan Agreement…**: Loan agreement executed between Daimler Financial Services Pvt. Ltd and Sharda Gems and…
- **2016-09-18 — Repayment Sta…**: Scheduled start date for repayment of…

## 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/sharda-gems-and-jewels-pvt-ltd-ib-372nd-2017-7373f9f6