# In the matter of Mars Remedies Private Limited

> NCLT judgment dated 2023-10-16. Citation: TCN-2023-NCLT-01199. Vrundavan Residency Pvt Ltd, the Financial Creditor, filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 16 Oct 2023
- **Citation:** TCN-2023-NCLT-01199
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mars-remedies-private-limited-1652b3d7

## Summary

### Background

Vrundavan Residency Pvt Ltd, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Mars Remedies Pvt Ltd, the Corporate Debtor, due to an alleged default on an unsecured loan. The Financial Creditor claimed to have disbursed Rs. 68,10,000/- to the Corporate Debtor between 2011 and 2015, with an interest rate varying from 13% to 18%. The Corporate Debtor allegedly defaulted after the sixth financial year from the first disbursement. The NCLT Ahmedabad Bench initially rejected the application on 22.03.2021, citing limitation issues. An appeal was filed before the NCLAT, which remitted the matter back to the NCLT for reconsideration. The applicant

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## Facts

Vrundavan Residency Pvt Ltd (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Mars Remedies Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed to have disbursed Rs.68,10,000/- to the Corporate Debtor on various dates between 2011 and 2015. The loan was unsecured with an interest rate varying from 13% to 18%. The Financial Creditor claimed that the Corporate Debtor defaulted after the sixth financial year from the first disbursement. The applicant has stated that the respondent had repaid Rs.34,00,000/- on various dates towards the principal amount and interest due. The NCLT, Ahmedabad Bench vide its order dated 22.03.2021 in

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## Issues and analysis

### Issue 1: Whether the application under …

**Ratio:** The admissibility of the application under Section 7 of the IBC depends on whether the

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**Reasoning:** The NCLT considered the objections raised by the respondent regarding the admissibility

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

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**Application:** In this case, the NCLT found that the applicant was a financial creditor, a

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## Parties

- **Judges:** Chitra Ha…; V. G. Venkata…
- **Appellants:** Vrundavan…
- **Respondents:** Mars Remedies Pvt…

## Timeline

- **2011-04-19 — Board Reso…**: Board Resolution dated 19th April 2011…
- **2011-06-30 — Loan Disbur…**: Rs. 5,00,000/-…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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