# In the matter of Action Barter Private Limited Vs. SREI Equipment Finance Limited and Ors. I.A. Nos. 811/2020, 917/2020, 962/2020 & 1587/2020 in CA (AT) (Ins) No. 1434 of 2019

> NCLAT judgment dated 2020-09-21. Citation: TCN-2020-NCLAT-00114. The case involves a Company Appeal (AT) (Insolvency) No. 1434 of 2019 filed by Action Barter…

- **Court:** NCLAT
- **Order date:** 21 Sept 2020
- **Citation:** TCN-2020-NCLAT-00114
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/action-barter-private-limited-vs-srei-equipment-finance-limited-and-ors-ia-nos-8-22ceb683

## Summary

### Background

The case involves a Company Appeal (AT) (Insolvency) No. 1434 of 2019 filed by Action Barter Private Limited against an order of the Adjudicating Authority (National Company Law Tribunal) Mumbai Bench, Mumbai, which admitted the application of SREI Equipment Finance Ltd. (Financial Creditor) against Shree Ram Urban Infrastructure Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appeal was dismissed on February 7, 2020, based on the Supreme Court's decision in 'Forech India Ltd. vs. Edelweiss Assets Reconstruction Co. Ltd.' The current proceedings involve four IAs seeking rectification/clarification/modification of the original judgment.

## Facts

1. SREI Equipment Finance Ltd. filed an application under Section 7 of the I&B Code against Shree Ram Urban Infrastructure Ltd. (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP).
2. The Adjudicating Authority admitted the application.
3. Action Barter Pvt. Ltd., a shareholder of the Corporate Debtor, challenged the admission order, primarily because a winding-up petition against the Corporate Debtor had already been admitted by the Bombay High Court on October 5, 2016, and an Official Liquidator had been appointed as Provisional Liquidator effective November 15, 2017.
4. The Provisional Liquidator had taken over the assets and properties of the Corporate Debtor on April 17, 2018, and carried out boundary determination on May 1,

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## Issues and analysis

### Issue 1: Whether the Appellate Tribunal erred in its initial judgment regarding the maintainability of the …

**Ratio:** The ratio is based on the interpretation of Section 7 of the I&B Code and the Supreme

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**Reasoning:** The Appellate Tribunal initially held that the Section 7 application was not maintainable

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**Interpretation:** The interpretation of Section 7 and the 'Forech India Ltd.' precedent is that

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**Application:** In this case, since a liquidation order had not been made against Shree Ram

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## Parties

- **Judges:** Bansi Lal…; Venugop…
- **Appellants:** Action Barter…
- **Respondents:** Shree Ram Urban…; SREI Equipment…

## Timeline

- **2016-10-05 — Winding-up Petition…**: Winding-up petition against Shree Ram Urban Infrastructure Ltd. admitted by Bombay High…
- **2017-11-15 — Appointment of…**: Official Liquidator appointed as Provisional Liquidator for Shree Ram Urban…

## 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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