# In the matter of Ten Travels Private Limited (IB) 2085(ND)-2019

> NCLT judgment dated 2020-03-19. Citation: TCN-2020-NCLT-01450. Volkswagen Finance Private Limited filed a petition under Section 7 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 19 Mar 2020
- **Citation:** TCN-2020-NCLT-01450
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ten-travels-private-limited-ib-2085nd-2019-626d3fc4

## Summary

### Background

Volkswagen Finance Private Limited filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Ten Travels Private Limited, the Corporate Debtor, due to its inability to liquidate its financial debt. The Corporate Debtor had availed financial facility from the Financial Creditor on 30.06.2017 and defaulted on repayment, leading to its account becoming NPA. The Financial Creditor had sanctioned a car loan of Rs. 1,10,89,800/- to the Corporate Debtor. The Directors of the Corporate Debtor, including Mr. Joginder Solanki and Ms. Rashmee, furnished guarantees dated 30th June, 2017. The Corporate Debtor failed to repay the amount as per the repayment schedule, and the account

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## Facts

Volkswagen Finance Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Ten Travels Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed financial facility from the Financial Creditor on 30.06.2017 and defaulted on repayment, leading to its account becoming NPA. The Financial Creditor sanctioned a car loan of Rs. 1,10,89,800/- to the Corporate Debtor. The Directors of the Corporate Debtor, Mr. Joginder Solanki, Ms. Rashmee, and Mr. Satish Sehrawat, furnished guarantees dated 30th June, 2017. The Corporate Debtor failed to repay the amount as per the repayment schedule, and the account was recalled by the

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial …

**Ratio:** Section 7 of the IBC requires the application to establish that there is a financial debt

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**Reasoning:** The NCLT found that the disbursement of the loan amount was not denied by the Respondent,

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**Interpretation:** The interpretation of Section 7 of the IBC focuses on the existence of a

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**Application:** In this case, the NCLT found that the disbursement of the loan amount was

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** Volkswagen…
- **Respondents:** TEN TRAVELS…

## Timeline

- **2017-06-30 — Financial Facility…**: The Corporate Debtor availed financial…
- **2017-06-30 — Guarantee Fu…**: The Directors of the Corporate…

## 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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