# In the matter of MVR Shipping Services Pvt. Ltd. {CP-IB-127-CHE-2023]

> NCLT judgment dated 2023-11-22. Citation: TCN-2023-NCLT-00636. The case involves an application filed by M/s. Shriram Finance Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 22 Nov 2023
- **Citation:** TCN-2023-NCLT-00636
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mvr-shipping-services-pvt-ltd-cp-ib-127-che-2023-0ddc95ad

## Summary

### Background

The case involves an application filed by M/s. Shriram Finance Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. MVR Shipping Services Pvt. Ltd, the Corporate Debtor. The Financial Creditor claims that the Corporate Debtor defaulted on loan repayments. The Corporate Debtor argued that the claim was barred by limitation, but the Adjudicating Authority found the application maintainable.

## Facts

M/s. Shriram Finance Limited (formerly known as Shriram Transport Finance Company Limited), the Financial Creditor, filed an application under Section 7 of the IBC, 2016, to initiate CIRP against M/s. MVR Shipping Services Pvt. Ltd, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor defaulted on loan repayments for seven vehicles, which were secured by Demand Promissory Notes and Hypothecation cum Loan Agreements. The loans were availed on 2019-01-10. The Corporate Debtor's account was declared NPA on 2020-05-21. The Financial Creditor issued a legal notice on 2022-12-01. The Corporate Debtor argued that the claim was barred by limitation, alleging that the date of default was 2020-02-21, and the limitation period expired on 2023-02-20,

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the IBC, 2016, is …

**Ratio:** Section 7 of the IBC, 2016, allows a Financial Creditor to file an application for

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**Reasoning:** The Adjudicating Authority found that the Financial Creditor had furnished the Record of

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**Interpretation:** Section 7 of the IBC, 2016, provides the mechanism for a Financial Creditor to

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**Application:** In this case, the Financial Creditor demonstrated that the Corporate Debtor had

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** M/s. SHRIRAM…
- **Respondents:** M/s. MVR SHIPPING…

## Timeline

- **1979-06-13 — Incorporation of…**: Shriram Finance Limited…
- **1991-06-28 — Incorporation of MVR…**: MVR Shipping Services…

## 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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