# In the matter of BAFNA MOTORS (RATNAGIRI) PRIVATE LIMITED

> NCLT judgment dated 2025-09-17. Citation: TCN-2025-NCLT-01372. Shriram Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 17 Sept 2025
- **Citation:** TCN-2025-NCLT-01372
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/bafna-motors-ratnagiri-private-limited-c2694acf

## Summary

### Background

Shriram Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Bafna Motors Ratnagiri Private Limited due to a default on a loan agreement.

## Facts

Shriram Finance Limited (formerly Shriram City Union Finance Limited) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Bafna Motors Ratnagiri Private Limited.

The Corporate Debtor availed a loan of Rs. 5,00,00,000/- from Shriram City Union Finance Limited vide Loan Agreement dated 27.03.2018, repayable in 60 monthly installments.

The Corporate Debtor defaulted in payment of the monthly installment due for September 2021, i.e., on 27.09.2021.

The total amount claimed to be in default was Rs. 6,17,15,056/- as on 09.05.2022.

The Financial Creditor issued a Demand Notice dated 09.05.2022 for demanding repayment of the outstanding amount.

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has successfully demonstrated the existence of a financial debt and …

**Ratio:** The Adjudicating Authority relied on the Sanction Letter dated 27.03.2018 and the Loan

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**Reasoning:** The Corporate Debtor defaulted in repayment of interest on 27.09.2021, leading the

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**Interpretation:** The Adjudicating Authority interpreted the evidence presented by the Financial

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**Application:** The Adjudicating Authority applied the principle established in Innoventive

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## Parties

- **Judges:** ASHISH…; SANJIV…
- **Appellants:** Shriram Finance…
- **Respondents:** Bafna Motors…
- **Other parties:** Shriram City…; S. Kang…
- **Advocates:** Rohit G…; Prakhar T…; +2 more

## Timeline

- **2018-03-27 — Loan Agre…**: Loan Agreement between Shriram City Union Finance Limited and Bafna Motors Ratnagiri…
- **2021-09-27 — Default…**: Corporate Debtor defaulted in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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