# In the matter of Varun Media Private Limited

> NCLT judgment dated 2023-07-14. Citation: TCN-2023-NCLT-02515. Naman Infradevelopers Private Limited filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 14 Jul 2023
- **Citation:** TCN-2023-NCLT-02515
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/varun-media-private-limited-42fa962e

## Summary

### Background

Naman Infradevelopers Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the corporate insolvency resolution process against Varun Media Private Limited, the Corporate Debtor, due to a default in loan repayment. The Financial Creditor and the Corporate Debtor entered into a loan agreement on 11 October 2021, where the Corporate Debtor availed a loan facility of INR 1,08,00,000 for three months, from 14 February 2022 to 13 May 2022, at 18% p.a. After the expiration of three months, the Corporate Debtor defaulted on the repayment.

## Facts

Naman Infradevelopers Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Varun Media Private Limited (Corporate Debtor). The Corporate Debtor availed a loan facility of INR 1,08,00,000 from the Financial Creditor for three months, from 14 February 2022 to 13 May 2022, at 18% p.a., based on a loan agreement dated 11 October 2021. The Corporate Debtor defaulted on repayment after the expiration of the three-month period. The Financial Creditor sent reminders on 16th May 2022, 25th June 2022, and 21st July 2022, but received no response. The Financial Creditor issued a legal notice on 28th July 2022. The total debt, including interest,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted …

**Ratio:** A default occurs when a debtor fails to repay a financial debt when it has become due and

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**Reasoning:** The Corporate Debtor failed to repay the loan amount of INR 1,08,00,000 within the

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**Interpretation:** The failure to repay the loan amount within the agreed timeframe constitutes a

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**Application:** The Corporate Debtor's failure to repay the loan amount, coupled with the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Naman Infradevelop…
- **Respondents:** Varun Media…

## Timeline

- **2021-10-11 — Loan Agre…**: Financial Creditor executed the loan…
- **2022-02-14 — Loan Period…**: Loan period started for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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