# In the matter of Infiniti Metal Products India Limited

> NCLT judgment dated 2024-05-03. Citation: TCN-2024-NCLT-01439. MSA Ventures Private Limited filed a petition under Section 7 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 3 May 2024
- **Citation:** TCN-2024-NCLT-01439
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/infiniti-metal-products-india-limited-b8164600

## Summary

### Background

MSA Ventures Private Limited filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Infiniti Metal Products India Limited, the Corporate Debtor. The Financial Creditor claimed a default of Rs. 15,30,12,000.00 as of 10.10.2023, with the date of default being 02.07.2023. The Corporate Debtor had approached the Financial Creditor on 15.11.2022 seeking a loan facility of Rs. 14,00,00,000.00 to clear a credit facility availed from UCO Bank. The loan was sanctioned and disbursed on various dates. The Corporate Debtor executed a deed of hypothecation on 02.01.2023. The Corporate Debtor failed to adhere to the repayment terms, leading to the Financial Creditor recalling the

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## Facts

MSA Ventures Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Infiniti Metal Products India Limited (Corporate Debtor). The Financial Creditor claimed a default of Rs. 15,30,12,000.00 as of 10.10.2023, with the date of default being 02.07.2023. The Corporate Debtor had sought a loan facility of Rs. 14,00,00,000.00 from the Financial Creditor on 15.11.2022 to clear a credit facility from UCO Bank. The loan was sanctioned and disbursed on various dates in November 2022. A deed of hypothecation was executed on 02.01.2023. The Corporate Debtor defaulted on repayment, leading the Financial Creditor to recall the loan via letter dated

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency & Bankruptcy Code, 2016, for …

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

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**Reasoning:** The Tribunal observed that the Financial Creditor had submitted sufficient evidence,

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

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

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## Parties

- **Judges:** SANJIV…; RAVICHANDRAN…
- **Appellants:** MSA VENTURES…
- **Respondents:** INFINITI METAL…

## Timeline

- **2010-03-11 — Incorporation of…**: MSA Ventures Private Limited incorporated as…
- **1998-10-16 — Incorporation of…**: Infiniti Metal Products India Limited incorporated under the provisions of the Companies…

## 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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