# In the matter of Value Makers International Ltd. (IB) 462(ND)-2017

> NCLT judgment dated 2018-03-08. Citation: TCN-2018-NCLT-01737. Daimler Financial Services Pvt. Ltd. filed a petition under Section 7 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 8 Mar 2018
- **Citation:** TCN-2018-NCLT-01737
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/value-makers-international-ltd-ib-462nd-2017-6cd3a262

## Summary

### Background

Daimler Financial Services Pvt. Ltd. filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Value Makers International Ltd., seeking initiation of the Corporate Insolvency Resolution Process. The petitioner, a Non-Banking Financial Company, provided financial assistance to the respondent/corporate debtor for purchasing a Mercedes Benz car. A loan of Rs. 28 Lakhs was granted, and a loan agreement dated 30.06.2014 was executed, with the corporate debtor agreeing to pay the loan along with interest at 11.55% per annum, amounting to Rs. 36,99,720/-. The corporate debtor failed to adhere to the repayment schedule, leading the financial creditor to invoke the Early Termination Quotation and demand Rs. 29,45,427.58/-.

## Facts

Daimler Financial Services Pvt. Ltd. (the petitioner), a Non-Banking Financial Company, filed a petition against Value Makers International Ltd. (the respondent/corporate debtor) under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process. The petitioner provided financial assistance to the respondent for the purchase of a Mercedes Benz car. A loan of Rs. 28 Lakhs was granted, and a loan agreement dated 30.06.2014 was executed, with the corporate debtor agreeing to repay the loan with interest at 11.55% per annum, totaling Rs. 36,99,720/-. The repayment was to be made in 60 equated monthly installments of Rs. 61,662/- from 16.08.2014 to 16.07.2019. The corporate debtor failed to adhere to the

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## Issues and analysis

### Issue 1: Whether the petition filed by Daimler Financial Services Pvt. Ltd. under Section 7 of the …

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

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**Reasoning:** The court considered the averments made in the petition, the loan agreement, and the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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

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## Parties

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

## Timeline

- **2014-06-30 — Loan Agre…**: Loan agreement executed between Daimler Financial Services Pvt. Ltd. and Value Makers…
- **2014-08-16 — 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)

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