# In the matter of Avneesh Kumar Singh Vs. Indian Delco Private Limited Company Appeal (AT) (Insolvency) No. 130 of 2021

> NCLAT judgment dated 2021-12-01. Citation: TCN-2021-NCLAT-00031. This case involves an appeal against the order dated 07.01.2021 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 1 Dec 2021
- **Citation:** TCN-2021-NCLAT-00031
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/avneesh-kumar-singh-vs-indian-delco-private-limited-company-appeal-6e70c068

## Summary

### Background

This case involves an appeal against the order dated 07.01.2021 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench-V, which admitted an application filed by the Financial Creditor (Indian Delco Private Limited) under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating Corporate Insolvency Resolution Process (CIRP) against the Appellant Company (SN Jee Build Well Private Limited). The appeal was filed by Avneesh Kumar Singh, the Suspended Director of the Appellant Company.

## Facts

In 2013, Indian Delco Private Limited extended a loan facility of INR 5,50,00,000 to SN Jee Build Well Pvt. Ltd. (Corporate Debtor) under a loan agreement dated 02.08.2013. INR 3,59,24,490 was disbursed to the Corporate Debtor. The loan agreement stipulated a 12% per annum interest rate. The Corporate Debtor made a repayment of INR 15,75,510 towards the principal on 17.12.2014 and paid INR 61,24,769 towards interest until 19.01.2016, after which payments ceased. On 01.04.2019, the Corporate Debtor confirmed an outstanding balance of INR 5,42,67,796. Indian Delco Private Limited issued a legal notice on 25.10.2019 demanding the unpaid amount, but received no reply or payment. The Appellant acknowledged the debt by countersigning the audited balance sheet for the

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed an …

**Ratio:** The Adjudicating Authority is empowered to initiate CIRP upon satisfaction of the

…

**Reasoning:** The NCLAT found no illegality in the Adjudicating Authority's decision, as the conditions

…

**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

…

**Application:** The NCLAT applied the provisions of Section 7 of the IBC to the facts of the

…

## Parties

- **Judges:** Anant Bijay…; Shreesha…
- **Appellants:** Avneesh Kumar…
- **Respondents:** S N Jee Build…; Indian Delco…

## Timeline

- **2013-01-01 — Loan Facility…**: Indian Delco Private Limited extended a loan facility of INR 5,50,00,000 to SN Jee Build…
- **2013-08-02 — Loan Agreeme…**: Loan Agreement was…

## 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/nclat-new-delhi/avneesh-kumar-singh-vs-indian-delco-private-limited-company-appeal-6e70c068