# In the matter of Two Way Container Lines Private Limited CP (IB) No. 1228-KB-2019

> NCLT judgment dated 2020-02-18. Citation: TCN-2020-NCLT-01903. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 18 Feb 2020
- **Citation:** TCN-2020-NCLT-01903
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/two-way-container-lines-private-limited-cp-ib-no-1228-kb-2019-695b6b0e

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Indus Container Lines Private Limited, the Financial Creditor, to initiate Corporate Insolvency Resolution Process (CIRP) against Two Way Container Lines Private Limited, the Corporate Debtor, due to default in payment of outstanding debt. The financial creditor had granted a loan of Rs. 35,00,000 in three tranches in March and April 2016, which remained unpaid.

## Facts

Indus Container Lines 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 Two Way Container Lines Private Limited (Corporate Debtor). The Financial Creditor had granted a loan of Rs. 35,00,000 to the Corporate Debtor in three tranches on March 2, 2016, March 20, 2016, and April 4, 2016. The loan remained unpaid. The Financial Creditor submitted that the loan was repayable within 30 days with an interest rate of 38.4% per annum. The Corporate Debtor contended that the cheque was given as security and was wrongly utilized, arguing that the debt was barred by limitation. The cheque dated 5.9.2018 was presented and bounced. Proceedings under

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is admissible …

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate CIRP against a

…

**Reasoning:** The court found that the debt was due and payable, and a default had occurred in

…

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

…

**Application:** The court applied Section 7 to the facts, noting that the Financial Creditor

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Indus Container…
- **Respondents:** Two Way Container…

## Timeline

- **2016-03-02 — Loan Disbur…**: Financial Creditor disbursed the first…
- **2016-03-20 — Loan Disbur…**: Financial Creditor disbursed the second…

## 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/two-way-container-lines-private-limited-cp-ib-no-1228-kb-2019-695b6b0e