# In the matter of OM SHAKTHI TRAVELS PRIVATE LIMITED

> NCLT judgment dated 2025-04-04. Citation: TCN-2025-NCLT-01026. Shriram Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Apr 2025
- **Citation:** TCN-2025-NCLT-01026
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/om-shakthi-travels-private-limited-6728c393

## Summary

### Background

Shriram Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy Board of India (Petition to Adjudicating Authority) Rules, against Om Shakthi Travels Pvt. Ltd. seeking initiation of Corporate Insolvency Resolution Process (CIRP). The petition pertains to defaults in repayment of vehicle loans.

## Facts

Shriram Finance Limited filed a petition under Section 7 of the IBC against Om Shakthi Travels Pvt. Ltd.

The petition relates to defaults in repayment of vehicle loans provided by Shriram Finance Limited to Om Shakthi Travels Pvt. Ltd.

The Corporate Debtor defaulted in payments of monthly installments.

Shriram Finance Limited took possession of 15 hypothecated vehicles and sold them in public auction.

Arbitral proceedings were initiated, and awards were passed in favor of Shriram Finance Limited on 29.12.2020.

The total amount claimed in the petition is Rs.9,27,50,112/-.

The Corporate Debtor did not appear despite notice and was set ex-parte.

The Financial Creditor proposed the name of Shri. Viswanthan Mathur Sabhapathy as the Interim Resolution Professional.

…

## Issues and analysis

### Issue 1: Whether the Financial Creditor has successfully demonstrated the existence of debt and default …

**Ratio:** The Financial Creditor has successfully demonstrated and shown the existence of debt and

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**Reasoning:** The Adjudicating Authority considered the loan documents, arbitral awards, and other

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**Interpretation:** The existence of debt and default is a prerequisite for admitting a petition

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**Application:** The Adjudicating Authority applied the provisions of Section 7 of the IBC to

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Shriram Finance…
- **Respondents:** Om Shakthi…
- **Other parties:** Vasantha…; Viswanthan Mathur…
- **Advocates:** P. Elayaraj…; Elayaraj…

## Timeline

- **2004-11-29 — Incorporati…**: Om Shakthi Travels Pvt.…
- **2020-12-29 — Arbitral…**: Arbitral awards were passed in…

## 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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