# In the matter of Talsons Motors Pvt. Ltd. CP (IB) No. 199-7-HDB-2021

> NCLT judgment dated 2022-04-26. Citation: TCN-2022-NCLT-03070. Quantum Holding Pvt Ltd, the Financial Creditor, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 26 Apr 2022
- **Citation:** TCN-2022-NCLT-03070
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/talsons-motors-pvt-ltd-cp-ib-no-199-7-hdb-2021-f59dfe2f

## Summary

### Background

Quantum Holding Pvt Ltd, the Financial Creditor, filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, read with Rule 4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Talsons Motors Pvt Ltd, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor defaulted on a debt of Rs. 7,36,61,212/-.

## Facts

Quantum Holding Pvt Ltd (Financial Creditor) advanced a business loan of Rs. 5,75,00,000/- to Talsons Motors Pvt Ltd (Corporate Debtor) at an interest rate of 24% per annum, with repayment due on 2021-07-02. The Corporate Debtor agreed to secure the loan repayment with post-dated cheques, a personal guarantee from Mr. Saral Talwar, and a corporate guarantee from Talwar Auto Garages Private Limited. The Corporate Debtor repaid Rs. 65,00,000/- towards the principal, leaving Rs. 5,10,00,000/- plus interest unpaid. The Financial Creditor claimed a total outstanding amount of Rs. 7,36,61,212/-, which includes principal and interest. The Corporate Debtor defaulted due to the Covid-19 pandemic. The relevance of these facts is to determine whether a financial debt exists and

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## Issues and analysis

### Issue 1: Whether there exists a Financial Debt, and if so, whether the Corporate Debtor defaulted on the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The Adjudicating Authority determined that the records clearly showed the existence of a

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**Interpretation:** The existence of a loan agreement and partial payment establishes a financial

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**Application:** The loan agreement and the Corporate Debtor's partial payment confirm the

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Quantum Holding…
- **Respondents:** Talsons Motors…

## Timeline

- **2021-07-02 — Repayment D…**: Repayment of the business loan of Rs.…
- **2021-07-27 — Consent fr…**: Shri Srinivasa Rao Somisetty gave his consent in Form-2 to act as Interim Resolution…

## 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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