# In the matter of Marut Creative Infra Private Limited

> NCLT judgment dated 2024-10-10. Citation: TCN-2024-NCLT-00449. A petition was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 by A.V.…

- **Court:** NCLT
- **Order date:** 10 Oct 2024
- **Citation:** TCN-2024-NCLT-00449
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/marut-creative-infra-private-limited-df012ca1

## Summary

### Background

A petition was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 by A.V. Corporation (Financial Creditor) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Marut Creative Infra Private Limited (Corporate Debtor) due to a default of INR 1,85,00,000/-. The date of default was specified as 01.04.2018. The Financial Creditor claimed that the Corporate Debtor had approached them for a loan in 2016, which was disbursed on 31.03.2017, with a repayment period of one year and an interest rate of 13% p.a. The Corporate Debtor failed to repay the amount after the expiry of the one-year period. The Financial Creditor issued demand letters, but the Corporate Debtor failed to make any repayments. The Corporate Debtor acknowledged its

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## Facts

A.V. Corporation (Financial Creditor) filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Marut Creative Infra Private Limited (Corporate Debtor). The claim was based on a default of INR 1,85,00,000/-. In 2016, the Corporate Debtor approached the Financial Creditor for a loan, which was formalized through a Loan Agreement dated 25.03.2017. The Financial Creditor disbursed the loan amount on 31.03.2017, with a repayment period of one year and an interest rate of 13% p.a. The Corporate Debtor failed to repay the principal amount and accrued interest after the one-year period expired. The date of default was 01.04.2018. The Financial Creditor issued demand letters on 10.04.2018

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is maintainable under Section 7 of the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court considered the documents and pleadings, including the Loan Agreement, demand

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

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**Application:** The court applied Section 7 to the facts, noting that the Financial Creditor

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** A.V.Corpo…
- **Respondents:** Marut Creative…

## Timeline

- **2016-01-01 — Loan Appli…**: Marut Creative Infra Private Limited…
- **2017-03-25 — Loan Agre…**: Loan Agreement executed between A.V. Corporation…

## 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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