# In the matter of Marg Limited

> NCLT judgment dated 2023-10-12. Citation: TCN-2023-NCLT-01265. The case involves a restoration application, Rst.A(IBC)/3/CHE/2023, filed by Shriram Finance…

- **Court:** NCLT
- **Order date:** 12 Oct 2023
- **Citation:** TCN-2023-NCLT-01265
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/marg-limited-64da691d

## Summary

### Background

The case involves a restoration application, Rst.A(IBC)/3/CHE/2023, filed by Shriram Finance Limited, the Applicant/Financial Creditor, seeking to restore Application No.(IBC)/16(CHE)/2022, which was dismissed for non-prosecution on 03.01.2023. The original Company Petition No: IBA/104/2020, filed under Section 7 of IBC, 2016 against the Corporate Debtor, Marg Limited, was also dismissed for non-prosecution on 09.06.2022. The Financial Creditor claims they did not intend to drag the proceedings and that the Corporate Debtor delayed matters under the guise of settlement. ICICI Bank had previously initiated CIRP against the Corporate Debtor, but it was withdrawn following an appeal to NCLAT.

## Facts

Shriram Finance Limited, the Financial Creditor, filed IBA/104/2020 under Section 7 of IBC, 2016, against Marg Limited, the Corporate Debtor. The Tribunal dismissed the application for non-prosecution on 09.06.2022. The Financial Creditor then filed Rst.A(IBC)/16/CHE/2022, a restoration application, which was also dismissed for non-prosecution on 03.01.2023 due to the Applicant's absence. The Financial Creditor claims they did not receive notice for the 03.01.2023 hearing. The Corporate Debtor argued that the Financial Creditor had filed an appeal against the 09.06.2022 order. The Financial Creditor issued a notice on 14.10.2019 to settle the amount, and the Corporate Debtor acknowledged the amount and requested arbitration on 22.10.2019. ICICI Bank had previously

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## Issues and analysis

### Issue 1: Whether the restoration application Rst.A(IBC)/3/CHE/2023 should be allowed, reinstating …

**Ratio:** The principle of natural justice dictates that parties should be given a fair opportunity

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**Reasoning:** The Tribunal found the Financial Creditor's explanation for non-appearance (lack of

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**Interpretation:** The Tribunal interpreted the circumstances surrounding the non-appearance to

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**Application:** The ratio was applied to the fact that the Financial Creditor claimed to have

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Shriram Finance…
- **Respondents:** Marg Li…

## Timeline

- **2019-05-28 — CIRP Init…**: CIRP initiated against the Corporate Debtor by…
- **2019-09-30 — CIRP With…**: Hon'ble NCLAT permitted…

## 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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