# In the matter of JALAN TRANSOLUTIONS (INDIA) LIMITED

> NCLT judgment dated 2025-03-04. Citation: TCN-2025-NCLT-00404. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 4 Mar 2025
- **Citation:** TCN-2025-NCLT-00404
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jalan-transolutions-india-limited-bdd7f889

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, for the commencement of corporate insolvency resolution process (CIRP) against the Corporate Debtor, M/s Jalan Transolutions (India) Limited, by the Financial Creditor, M/s. Capital Trade Links Limited. The Financial Creditor claims a default on a debt of Rs. 3,55,42,279/- out of a total debt granted of Rs.1,79,33,325/-. The Corporate Debtor, however, submitted an affidavit indicating that the amount of debt would be repaid within 24 months.

## Facts

M/s. Capital Trade Links Limited (Financial Creditor) filed an application under Section 7 of the IBC, 2016, against M/s Jalan Transolutions (India) Limited (Corporate Debtor) for initiation of CIRP. The total debt granted was Rs. 1,79,33,325/-, with a claim of default amounting to Rs. 3,55,42,279/-. The disbursement dates ranged from 14.12.2021 to 13.07.2022. A partial payment of Rs. 20,15,000/- was repaid by the Corporate Debtor on 22.12.2023. The loan agreement specified a bullet payment repayment schedule with an interest rate of 12% p.a. The Corporate Debtor filed an affidavit admitting the debt but sought an opportunity to repay it within 24 months, citing financial losses during the COVID-19 pandemic. The affidavit also stated that there was no mutual agreement

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC, 2016, should be admitted for the commencement …

**Ratio:** Section 7 of the IBC, 2016, provides the procedure for initiating the corporate

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**Reasoning:** The court considered the documents presented, including the Banker's Book, Loan

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** The court applied the provisions of Section 7 of the IBC to the facts of the

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. ANIL RAJ…
- **Appellants:** M/S.CAPITAL TRADE…
- **Respondents:** M/s Jalan…

## Timeline

- **2021-12-14 — Loan Agreeme…**: Loan agreement between Capital Trade Links Limited and Jalan Transolutions (India)…
- **2021-12-14 — First Disbu…**: First disbursement of 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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