# In the matter of Silver Jubilee Motors Limited

> NCLT judgment dated 2024-07-03. Citation: TCN-2024-NCLT-01076. The case involves an application filed by Mr. Ishwar Punjabi, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 3 Jul 2024
- **Citation:** TCN-2024-NCLT-01076
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/silver-jubilee-motors-limited-291ea477

## Summary

### Background

The case involves an application filed by Mr. Ishwar Punjabi, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Silver Jubilee Motors Limited, the Corporate Debtor. The Financial Creditor claimed a total amount of Rs. 17,12,97,358/- due as of 15.12.2021, including interest and overdue interest, from a principal amount of Rs. 31,55,50,000/- disbursed between December 2006 and July 2017. The Corporate Debtor, engaged in the sale of motor vehicles, had allegedly defaulted in repayment. The Corporate Debtor contested the application, arguing the absence of a formal financial contract, disputing the amount due, and claiming the application was barred by limitation and the

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## Facts

Mr. Ishwar Punjabi, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Silver Jubilee Motors Limited, the Corporate Debtor. The Financial Creditor claimed that a total principal amount of Rs. 31,55,50,000/- was disbursed to the Corporate Debtor between December 2006 and July 2017. As of 15.12.2021, the Corporate Debtor had repaid Rs. 21,82,50,000/- towards principal and Rs. 8,27,22,125/- towards interest, but defaulted on the balance amount. The total amount due as of 15.12.2021 was claimed to be Rs. 17,12,97,358/-, including interest and overdue interest. The Corporate Debtor argued that there was no formal financial contract, disputed the amount

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## Issues and analysis

### Issue 1: Whether, in the absence of a written agreement containing the terms and conditions of lending money …

**Ratio:** A formal written contract is not a pre-condition for proving the existence of financial

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**Reasoning:** The Tribunal relied on the Hon'ble NCLAT's decision that the Code does not mandate a

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**Interpretation:** The interpretation of Section 5(8) of the Code and Rule 3(1)(d) of the AAA

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**Application:** The Tribunal found that despite the absence of a formal written contract, the

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Ishwar Pu…
- **Respondents:** Silver Jubilee…

## Timeline

- **2006-12-01 — Loan Req…**: The Corporate Debtor approached the…
- **2017-07-01 — Loan Disbur…**: The Financial Creditor disbursed a total principal amount of Rs. 31,55,50,000/- to the…

## 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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