# In the matter of Adventz Finance Private Limited
Vs.
Jai Annanya Investments Private Limited Company Appeal (AT) (Insolvency) No. 475 of 2022

> NCLAT judgment dated 2022-10-12. Citation: TCN-2022-NCLAT-00161. The case involves an appeal against the order dated 12.01.2022 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 12 Oct 2022
- **Citation:** TCN-2022-NCLAT-00161
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/adventz-finance-private-limited-vs-jai-annanya-investments-private-limited-compa-1b71c1e3

## Summary

### Background

The case involves an appeal against the order dated 12.01.2022 passed by the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, Kolkata, which rejected a Section 7 application filed under the Insolvency and Bankruptcy Code, 2016. The appellant, Adventz Finance Private Limited, had extended an Inter Corporate Deposit (ICD) to the corporate debtor, Jai Annanya Investments Private Limited. The corporate debtor defaulted on its repayment obligations, leading to the filing of the Section 7 application. The Adjudicating Authority rejected the application, leading to the current appeal before the NCLAT.

## Facts

Adventz Finance Private Limited (the Appellant) extended an Inter Corporate Deposit (ICD) of Rs. 40 Crore to Jai Annanya Investments Private Limited (the Corporate Debtor). The Corporate Debtor requested the ICD on 14.05.2014, with an interest rate of 12.5% payable half-yearly. Adventz Investments and Holdings Ltd., which later merged with the Appellant, sanctioned the ICD. The Corporate Debtor repaid some amounts towards principal and interest. Due to defaults in servicing the interest and repayment obligations, a legal notice dated 04.01.2016 was issued to the Corporate Debtor. The Corporate Debtor replied on 03.02.2016, stating that the ICD was invested in various securities and the business was affected by SEBI directions. The Corporate Debtor acknowledged its

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the Section 7 application filed by the …

**Ratio:** The Adjudicating Authority should consider all relevant evidence, including

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**Reasoning:** The NCLAT found that the Adjudicating Authority failed to properly consider the

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial

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**Application:** In this case, the NCLAT determined that the Adjudicating Authority's rejection

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Adventz Finance…
- **Respondents:** Jai Annanya…

## Timeline

- **2014-05-14 — Corporate Debtor…**: Jai Annanya Investments Private Limited requested an Inter Corporate Deposit of Rs. 40…
- **2014-06-02 — Amalgamation S…**: Adventz Investments and Holdings Ltd. merged with the Appellant pursuant to a scheme of…

## 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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