# In the matter of Fly Express Logistics Limited

> NCLT judgment dated 2023-09-26. Citation: TCN-2023-NCLT-01473. The case involves an application filed by Hinduja Leyland Finance Limited (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 26 Sept 2023
- **Citation:** TCN-2023-NCLT-01473
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fly-express-logistics-limited-c8ab460e

## Summary

### Background

The case involves an application filed by Hinduja Leyland Finance Limited (Financial Creditor) against M/S Fly Express Logistic Pvt. Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) due to default in repayment of a loan. The Financial Creditor had executed fifteen loan agreements with the Corporate Debtor for purchasing commercial vehicles. The repayment began on 01.12.2018 and was to end on 01.08.2023. The Corporate Debtor defaulted, leading the Financial Creditor to take possession of the vehicles and sell them. Arbitration proceedings were initiated, resulting in an award in favor of the Financial Creditor. An earlier application under Section 7 was rejected on

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## Facts

Hinduja Leyland Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against M/S Fly Express Logistic Pvt. Ltd. (Corporate Debtor) for initiating CIRP due to a default in loan repayment. Fifteen loan agreements were executed between the parties on 24.08.2018 for purchasing commercial vehicles. The repayment schedule started on 01.12.2018 and was to end on 01.08.2023. The Corporate Debtor defaulted on payments. The Financial Creditor took possession of the vehicles and sold them. Arbitration proceedings were initiated as per clause 22 of the loan agreement, resulting in an award on 24.12.2020 in favor of the Financial Creditor for Rs. 3,34,18,474 plus 18% interest p.a. An earlier Section 7 application was

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## Issues and analysis

### Issue 1: Whether the instant application is …

**Ratio:** Section 238A of the IBC, 2016 read with Article 137 of the Schedule of the Limitation

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**Reasoning:** The court considered the arguments of the Financial Creditor's counsel that the date of

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**Interpretation:** The limitation period for filing an application under Section 7 of the IBC is 3

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**Application:** The court determined that the date of default was 01.07.2023. Since the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Hinduja Leyland…
- **Respondents:** M/S FLY EXPRESS…

## Timeline

- **2018-08-24 — Loan Agreements…**: Fifteen loan agreements executed between Hinduja Leyland Finance Limited and M/S Fly…
- **2018-12-01 — Repayment Sta…**: Repayment of the loan…

## 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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