# In the matter of Infiniti Metal Products India Limited

> NCLT judgment dated 2024-05-03. Citation: TCN-2024-NCLT-01444. MSA Ventures Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 3 May 2024
- **Citation:** TCN-2024-NCLT-01444
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/infiniti-metal-products-india-limited-dc2847cd

## Summary

### Background

MSA Ventures Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Infiniti Metal Products India Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). 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 credit availed from UCO Bank. The loan was sanctioned and disbursed on various dates in November 2022. 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 default.

## Facts

MSA Ventures Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Infiniti Metal Products India Limited (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP). 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 approached the Financial Creditor on 15.11.2022 seeking a loan facility of Rs. 14,00,00,000.00 to clear credit availed from UCO Bank. The loan was sanctioned and disbursed on various dates in November 2022: Rs. 50,00,00,00/- on 21.11.2022, Rs. 30,00,00,00/- on 28.11.2022, Rs. 35,00,00,00/- on 29.11.2022, and Rs. 25,00,00,00/- on 30.11.2022. The Corporate Debtor

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## Issues and analysis

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

**Ratio:** The Hon'ble Supreme Court in Innovative Industries Limited v. ICICI Bank held that once a

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**Reasoning:** The Tribunal relied on the Supreme Court's judgment, stating that the adjudicating

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**Interpretation:** The Supreme Court's ruling clarifies that the primary requirement for admitting

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**Application:** In this case, the Tribunal found that the Financial Creditor had provided

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## Parties

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

## Timeline

- **2022-11-15 — Corporate Debtor seeks…**: Infiniti Metal Products India Limited approached MSA Ventures Private Limited seeking a…
- **2022-11-21 — Loan Disbur…**: Rs. 50,00,00,00/- disbursed by MSA Ventures Private Limited to Infiniti Metal Products…

## 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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