# In the matter of A F ENTERPRISES LIMITED

> Read the full IBC case summary for In the matter of A F ENTERPRISES LIMITED. NCLT judgment dated 2025-04-25. Citation: TCN-2025-NCLT-00995.

- **Court:** NCLT
- **Order date:** 25 Apr 2025
- **Citation:** TCN-2025-NCLT-00995
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/a-f-enterprises-limited-9f7bf995

## Summary

### Background

A financial creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against the corporate debtor due to an alleged default in loan repayment.

## Facts

Findoc Finvest Private Limited, the financial creditor, filed a company application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against AF Enterprises Limited, the corporate debtor. The application, filed on August 30, 2023, alleged a default of Rs. 2,44,19,528/- as of May 1, 2022. The financial creditor submitted a 'record of default' dated May 1, 2022, generated by NeSL, which indicated the corporate debtor's default under the loan agreement was 'deemed to be authenticated'.

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## Issues and analysis

### Issue 1: Whether the corporate debtor committed a…

**Ratio:** A default in interest payment, as per the loan agreement's terms, constitutes a valid…

**Reasoning:** The NCLT found that the corporate debtor had defaulted on interest payments for April…

**Interpretation:** The NCLT interpreted Article 6(a) of the Loan Agreement to allow termination…

**Application:** The corporate debtor's failure to pay interest for April 2022, leading to a…

## Parties

- **Judges:** JYOTSNA S…; Anu Jagmoha…
- **Advocates:** For the Applicant:…; For the Respondent…

## Timeline

- **March 14, 2022 — Loan Agre…**: Loan agreement entered into between Findoc Finvest Private Limited (Financial Creditor)…
- **May 1, 2022 — First Date of…**: Corporate Debtor defaulted for the first time in making payment towards the monthly…

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