# Shriram Finance Company Ltd Vs Karthik Travels Pvt Ltd

> NCLT judgment dated 2026-10-15. Citation: TCN-2026-NCLT-01207. Shriram Finance Limited (Financial Creditor) filed CP(IB)/157/CHE/2023 under Section 7 of the…

- **Court:** NCLT
- **Order date:** 15 Oct 2026
- **Citation:** TCN-2026-NCLT-01207
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/karthik-travels-private-limited-ett4c

## Summary

### Background

Shriram Finance Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Karthik Travels Private Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor alleged that the Corporate Debtor defaulted on financial facilities, including 39 vehicle loans and two term loans, sanctioned in 2018. The total financial debt claimed was Rs. 9,26,14,822/- as of May 19, 2023, with the amount in default being Rs. 23,54,74,793/- as of the same date. The petition was filed on August 14, 2023.

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## Facts

Shriram Finance Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Karthik Travels Private Limited, the Corporate Debtor. The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to alleged defaults on financial facilities. The Financial Creditor, an NBFC incorporated under the Companies Act, 1956, sanctioned 39 vehicle loans and two term loans to the Corporate Debtor in 2018 for its business operations.

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor under Section 7 of the IBC is maintainable,…

**Ratio:** A petition under Section 7 of the IBC is maintainable if the default occurred prior to

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**Reasoning:** The Tribunal reasoned that the default was committed prior to March 25, 2020, as the

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**Interpretation:** The court interpreted Section 10A of the IBC strictly, holding that its bar on

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**Application:** Since the Corporate Debtor's account was declared NPA on March 16, 2020, which

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** riram Finance…
- **Respondents:** Karthik Travels…
- **Other parties:** M.S.Viswanathan…; M. Sakthivel…; +6 more
- **Advocates:** Swathi, Ld.…; Hasthisha…

## Timeline

- **27 March 2018 — Loan Disbursem…**: Financial Creditor began disbursing…
- **19 July 2019 — Loan Disburse…**: Financial Creditor concluded disbursing…

## 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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