# In the matter of Infiniti Metal Products India Ltd

> NCLT judgment dated 2024-05-03. Citation: TCN-2024-NCLT-01440. 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-01440
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/infiniti-metal-products-india-ltd-fe28a27a

## Summary

### Background

MSA Ventures Private Limited filed a petition under Section 7 of the Insolvency & 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 a credit facility 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 Petitioner issued a demand notice on 01.08.2023, but received no response. The Tribunal set the respondent Ex-parte due to their

…

## Facts

MSA Ventures Private Limited (Financial Creditor) filed a petition against Infiniti Metal Products India Limited (Corporate Debtor) under Section 7 of the Insolvency & Bankruptcy Code, 2016. 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. This loan was sanctioned and disbursed on various dates in November 2022. A deed of hypothecation was executed on 02.01.2023, hypothecating movable plant and machinery, inventory, book debts, and related movables. The repayment schedule required the Corporate Debtor to repay the loan in 42 months, but

…

## Issues and analysis

### Issue 1: Whether the Financial Creditor has proved …

**Ratio:** The legal principle is that a 'financial debt' exists when a debt is disbursed against

…

**Reasoning:** The Tribunal reviewed the documents, including the loan agreement and the deed of

…

**Interpretation:** The term 'financial debt' is interpreted to include any debt disbursed against

…

**Application:** In this case, the loan disbursed by MSA Ventures Private Limited to Infiniti

…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/infiniti-metal-products-india-ltd-fe28a27a