# 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-03882. 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-03882
- **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-2021-64f5b23d

## Summary

### Background

The Design Plus Architecture filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Modex International Securities Limited, the corporate debtor. The applicant claimed that the corporate debtor had availed financial facilities via a loan agreement dated 2019-04-01 and defaulted on repayment, with a sum of Rs. 4,46,86,490 outstanding as of 2021-02-25.

## 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 applicant claimed that the corporate debtor availed financial facility from the financial creditor by way of loan agreement dated 2019-04-01. The corporate debtor defaulted on the repayment of the loan. As of 2021-02-25, a sum of Rs. 4,46,86,490 was due and payable by the respondent company. The applicant proposed Mr. Sanjay Garg as the Interim Resolution Professional (IRP). The corporate debtor acknowledged committing default in repayment of the loan. The registered office of the

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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 found that the material placed on record confirmed that the respondent had a

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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, finding that the debt was due, the

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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 — Debt Cla…**: Date on which the applicant claimed a sum…

## 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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