# In the matter of Modex International Securities Limited Company Petition  No. (IB)-174 (ND)-2021

> NCLT judgment dated 2022-03-04. Citation: TCN-2022-NCLT-03898. The Design Plus Architecture filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 4 Mar 2022
- **Citation:** TCN-2022-NCLT-03898
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/modex-international-securities-limited-company-petition-no-ib-174-nd-2021-14105558

## Summary

### Background

The Design Plus Architecture filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Modex International Securities Limited. The applicant, Design Plus Architecture, claimed that Modex International Securities Limited had defaulted on a loan agreement dated 01.04.2019. The application was filed due to the corporate debtor's failure to repay the loan amount, with a claimed outstanding amount of Rs. 4,46,86,490 as of 25.02.2021.

## Facts

Design Plus Architecture, the applicant and financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Modex International Securities Limited, the respondent and corporate debtor. The application was based on a loan agreement dated 01.04.2019, under which Modex International Securities Limited availed financial facilities from Design Plus Architecture. The corporate debtor allegedly defaulted on repaying the loan, with an outstanding amount of Rs. 4,46,86,490 as of 25.02.2021. The applicant submitted documents, including the loan agreement and bank statements, to support its claim. The corporate debtor acknowledged its intention to repay the loan but cited

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** An application under Section 7 of the Code is maintainable if the debt is proved to be

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**Reasoning:** The court noted that the applicant had demonstrated that the debt was due and that the

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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 ratio to the facts by confirming that the debt was due,

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## Parties

- **Judges:** Sh. Dharminder…; SUMITAPURKA…
- **Appellants:** DESIGN PLUS…
- **Respondents:** MODEX INTERNATIONA…

## Timeline

- **2019-04-01 — Loan Agreeme…**: Date of the loan agreement between Design Plus Architecture and Modex International…
- **2021-02-25 — Outstanding Amount…**: The applicant claimed that as of this date,…

## 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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