# In the matter of Kailash Motilal Kakrania & Ors. vs. Apurva Oil and Industries Private Limited

> NCLAT judgment dated 2024-10-15. Citation: TCN-2024-NCLAT-00158. This is a Company Appeal (AT) (Insolvency) No. 1257 of 2023 filed against the order dated…

- **Court:** NCLAT
- **Order date:** 15 Oct 2024
- **Citation:** TCN-2024-NCLAT-00158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kailash-motilal-kakrania-ors-vs-apurva-oil-and-industries-private-limited-80202a92

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 1257 of 2023 filed against the order dated 14.07.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) in C.P. (IB) No. 986/NCLT/MB/C-IV/2021. The Adjudicating Authority had dismissed the petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Appellants, Mr. Kailash Motilal Kakrania and his wife Mrs. Manju Kailash Kakrania, had filed a petition under Section 7 of the Code on 04.09.2021 against Apurva Oil and Industries Private Limited, the Corporate Debtor. The Appellants claimed a default of Rs. 1,22,42,927/-, including principal and interest. The NCLT rejected the petition primarily because the Appellants did not meet the threshold prescribed under Section 4 of

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## Facts

Mr. Kailash Motilal Kakrania and his wife, Mrs. Manju Kailash Kakrania, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against Apurva Oil and Industries Private Limited, the Corporate Debtor, on 04.09.2021. They claimed a default of Rs. 1,22,42,927/-, including Rs. 1,01,50,000/- as principal and Rs. 20,92,918/- as interest. The Corporate Debtor is engaged in the business of dealing in Oil Seeds, Oil Products, and Agro Products. The NCLT rejected the petition on 14.07.2023, stating that the Appellants did not meet the threshold under Section 4 of the Code, as there was no agreed-upon interest and a counterclaim of Rs. 10,85,850/- by the Corporate Debtor reduced the debt below Rs. 1 Crore. The Corporate Debtor claimed that Mr. Kailash

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in dismissing the petition filed under Section 7 of the …

**Ratio:** The Adjudicating Authority erred in allowing adjustment of Rs. 10,85,850/- against the

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**Reasoning:** The NCLAT found that the Adjudicating Authority erred in allowing the adjustment of Rs.

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**Interpretation:** The interpretation of Section 7 of the IBC involves determining whether a

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**Application:** In this case, the NCLAT found that the Adjudicating Authority erred in allowing

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## Parties

- **Judges:** Rakesh Kuma…; Ajai Das Me…
- **Appellants:** Kailash Motilal…
- **Respondents:** Apurva Oil and…; M/s Apurva Oil…

## Timeline

- **2021-04-09 — Filing of Section 7…**: Mr. Kailash Motilal Kakrania and Mrs. Manju Kailash Kakrania filed a petition under…
- **2021-06-06 — Police Complai…**: The Respondent filed a police complaint against Mr. Kailash Kakrania for cheating and…

## 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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