# In the matter of Naresh Kumar Aggarwal vs. CFM Asset Reconstruction Pvt. Ltd. & Ors.

> NCLAT judgment dated 2023-09-21. Citation: TCN-2023-NCLAT-00179. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, against an…

- **Court:** NCLAT
- **Order date:** 21 Sept 2023
- **Citation:** TCN-2023-NCLAT-00179
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/naresh-kumar-aggarwal-vs-cfm-asset-reconstruction-pvt-ltd-ors-c88775aa

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, against an order dated 11.05.2022 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi) in CP(IB) No.108(PB)/2022. The Adjudicating Authority admitted an application under Section 7 of the IBC filed by CFM Asset Reconstruction Pvt. Ltd. (Respondent No.1), initiating Corporate Insolvency Resolution Process (CIRP) against Micro Stock Holdings Pvt. Ltd. The appeal was filed by a shareholder of the Corporate Debtor, challenging the admission of the Section 7 application.

## Facts

A consortium of banks, including State Bank of India (SBI), sanctioned multiple credit facilities to M/s Action Ispat and Power Private Ltd. (Principal Borrower) from 2007 to 2012. Unable to repay the debts, the Principal Borrower requested debt restructuring, leading to a Master Restructuring Agreement (MRA) between the Principal Borrower and lenders, with SBI as the Lead Bank. A Deed of Guarantee was executed on 30.09.2013 by the Corporate Debtor (M/s Micro Stock Holdings Pvt. Ltd.) in favor of SBICAP Trustee Company Ltd., securing the loans availed by the Principal Borrower. This was followed by a second Supplemental and Amendatory MRA on 12.06.2015, and the Corporate Debtor executed a revival letter of acknowledgment on 16.07.2016. SBI entered into an Assignment

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## Issues and analysis

### Issue 1: Whether the Respondent No.1 properly served notice …

**Ratio:** Service of notice by any one mode as directed by the Adjudicating Authority is

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**Reasoning:** The Adjudicating Authority directed service of notice by email and dasti. The Respondent

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**Interpretation:** The Adjudicating Authority's interim order allowed service of notice by any one

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**Application:** The Respondent No.1 served notice by email to the registered email address of

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Naresh Kumar…
- **Respondents:** M/s Micro Stock…; CFM Asset…
- **Advocates:** Alok…; Varsha Ba…; +8 more

## Timeline

- **2007-01-01 — Credit Facilities…**: A consortium of banks, including State Bank of India, sanctioned multiple credit…
- **2012-12-01 — End of Credit…**: End date of the period during which credit facilities were sanctioned to M/s Action Ispat…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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