# In the matter of Value Infracon India Private Limited (IB)-22 (PB)-2018

> NCLT judgment dated 2018-05-04. Citation: TCN-2018-NCLT-01458. Daimler Financial Services Pvt. Ltd., the Financial Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 4 May 2018
- **Citation:** TCN-2018-NCLT-01458
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/value-infracon-india-private-limited-ib-22-pb-2018-66e676c4

## Summary

### Background

Daimler Financial Services Pvt. Ltd., the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Value Infracon India Pvt. Ltd., the Corporate Debtor. The application was filed on 2017-12-29. The Financial Creditor is a Non-Banking Financial Company. The Corporate Debtor was incorporated on 2007-07-06. The Financial Creditor proposed Mr. Sanjay Kumar Singh as the Interim Resolution Professional (IRP). The Financial Creditor presented evidence to prove the default, disclosing a total loan amount of Rs. 54,30,000 granted to the Corporate Debtor via a loan agreement dated 2014-09-08 for the purchase of a Mercedes Benz car. The car was hypothecated to the

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## Facts

Daimler Financial Services Pvt. Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Value Infracon India Pvt. Ltd. (Corporate Debtor). The application was filed on 2017-12-29. The Financial Creditor is a Non-Banking Financial Company incorporated under the Companies Act, 1956. The Corporate Debtor was incorporated on 2007-07-06. The Financial Creditor proposed Mr. Sanjay Kumar Singh as the Interim Resolution Professional (IRP). The total loan granted to the Corporate Debtor was Rs. 54,30,000, evidenced by a loan agreement dated 2014-09-08 for the purchase of a Mercedes Benz car. The car was hypothecated to the Financial Creditor as security for the

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The court examined the application and found that it complied with the requirements of

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

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**Application:** In this case, the Financial Creditor, Daimler Financial Services Pvt. Ltd.,

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## Parties

- **Judges:** M.K. Sh…; DEEPTI M…
- **Appellants:** Daimler Financial…
- **Respondents:** Value Infracon…

## Timeline

- **2007-07-06 — Incorporation of…**: Value Infracon India Pvt.…
- **2010-10-29 — Incorporation of…**: Daimler Financial Services India…

## 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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