# In the matter of Unimac Plastic Technology Pvt. Ltd.

> NCLT judgment dated 2023-08-31. Citation: TCN-2023-NCLT-01820. Shriram Finance Limited, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 31 Aug 2023
- **Citation:** TCN-2023-NCLT-01820
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/unimac-plastic-technology-pvt-ltd-5af5aa9b

## Summary

### Background

Shriram Finance Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Unimac Plastic Technology Private Limited, the Corporate Debtor, due to defaults in repayment of loans. The Financial Creditor claimed a total sum of Rs. 2,95,24,65/- as the financial debt, with the date of default stated as 2019-09-27. The Corporate Debtor had approached the Financial Creditor for loans in 2017, which were sanctioned in 2018. Despite multiple loan agreements and repayment schedules, the Corporate Debtor defaulted, leading to the loan account being classified as a Non-Performing Asset (NPA) in 2020. The Financial Creditor issued recall notices and

…

## Facts

Shriram Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Unimac Plastic Technology Private Limited (Corporate Debtor) seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a total debt of Rs. 2,95,24,65/- with the date of default being 2019-09-27. The Corporate Debtor had approached the Financial Creditor on 2017-12-21 seeking loans. The Financial Creditor sanctioned a term loan of Rs. 50,00,000/- on 2018-02-27, and a Term Loan Agreement (TLA) was executed. Mr. R. Balakrishnan Ramasamy stood as the Guarantor. A Memorandum of Deposit of Title Deed dated 2018-02-27 was executed in favor of the Financial Creditor. The Term Loan was to be repaid in 60

…

## Issues and analysis

### Issue 1: Whether the application 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

…

**Reasoning:** The Tribunal considered the documents and submissions made by the Financial Creditor,

…

**Interpretation:** Section 7 of the IBC, 2016, provides a mechanism for financial creditors to

…

**Application:** In this case, the Financial Creditor provided evidence of loan agreements,

…

## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** Shriram Finance…
- **Respondents:** Unimac Plastic…

## Timeline

- **2017-12-21 — Loan Appli…**: The Corporate Debtor approached the…
- **2018-02-27 — Term Loan San…**: The Financial Creditor sanctioned a term loan…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/unimac-plastic-technology-pvt-ltd-5af5aa9b