# In the matter of Transport Solutions India Private Limited C.P. No. 3650-IBC-MB-2018

> NCLT judgment dated 2022-03-02. Citation: TCN-2022-NCLT-03919. The case involves a company petition filed by Bank of Maharashtra, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 2 Mar 2022
- **Citation:** TCN-2022-NCLT-03919
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/transport-solutions-india-private-limited-cp-no-3650-ibc-mb-2018-a8677356

## Summary

### Background

The case involves a company petition filed by Bank of Maharashtra, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Transport Solutions India Private Limited, the Corporate Debtor. The Financial Creditor claimed an unresolved financial debt of Rs. 24,24,42,995/-. The Corporate Debtor contended that the loan account was wrongly classified as NPA and that the Financial Creditor had already filed an original application before the Debt Recovery Tribunal, Pune, for a claim of Rs. 22,57,65,097/-. The Corporate Debtor also claimed an OTS settlement was agreed upon. Despite this, the Corporate Debtor gave an undertaking to deposit Rs. 10 crores into a no-lien account

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## Facts

Bank of Maharashtra, the Financial Creditor, filed a company petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Transport Solutions India Private Limited, the Corporate Debtor. The Financial Creditor claimed an unresolved financial debt of Rs. 24,24,42,995/-. The Corporate Debtor contended that the loan account was wrongly classified as NPA and that the Financial Creditor had already filed an original application before the Debt Recovery Tribunal, Pune, for a claim of Rs. 22,57,65,097/-. The Corporate Debtor also claimed an OTS settlement was agreed upon. The Corporate Debtor gave an undertaking to deposit Rs. 10 crores into a no-lien account to enable the bank to consider the OTS

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## Issues and analysis

### Issue 1: Whether the company petition filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The court considered the submissions from both sides, the reply filed by the Corporate

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their debts

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**Application:** The court applied Section 7 to the facts of the case, finding that the

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** Transport…; Transport…

## Timeline

- **2018-01-01 — Company Petiti…**: Company Petition No.…
- **2022-03-02 — Order Da…**: Order passed by NCLT admitting 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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