# In the matter of Acute Retail Infra Private Limited

> NCLT judgment dated 25 Sept 2024. Citation: TCN-2024-NCLT-00545. The financial creditor filed a petition under Section 7 of the IBC to initiate CIRP against…

- **Court:** NCLT
- **Order date:** 25 Sept 2024
- **Citation:** TCN-2024-NCLT-00545
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/acute-retail-infra-private-limited-1404e684

## Summary

### Background

The financial creditor filed a petition under Section 7 of the IBC to initiate CIRP against the corporate debtor due to a default in repayment of a financial debt amounting to Rs. 65,13,89,934/-.

## Facts

Avendus Finance Private Limited, the financial creditor, filed a Company Petition on October 5, 2023, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Acute Retail Infra Private Limited, the corporate debtor. The petition was filed for a financial debt of Rs. 65,13,89,934/-, with the date of default stated as April 29, 2022. The financial creditor, along with SP Finance and VLFPL, had agreed to provide a term loan facility of Rs. 115 Crores to the corporate debtor under a Facility Agreement dated March 9, 2018. The petitioner disbursed Rs. 66 Crores on March 28, 2018, which was secured by various instruments including Deeds of Hypothecation, Share Pledge Agreements, Personal Guarantees, Promissory Notes, and a Letter of Continuity. The corporate debtor also executed a Security Trustee Agreement with IDBI Trusteeship Services Limited.

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## Issues and analysis

### Issue 1: Whether the financial creditor's application for initiating CIRP against the corporate debtor is…

**Ratio:** A general authorization to an officer of the financial creditor is sufficient to maintain…

**Reasoning:** The NCLT referred to the Supreme Court judgment in Rajendra Narottamdas Sheth and Anr.…

**Interpretation:** The court interpreted the requirement for authorization broadly, allowing for…

**Application:** The technical objection raised by the corporate debtor regarding the Board…

## Parties

- **Judges:** Reeta K…; Madhu S…
- **Advocates:** For the Petitioner…; For the Corporate…

## Timeline

- **March 1, 2018 — Master Lease A…**: Corporate Debtor and Future Retail Limited…
- **March 9, 2018 — Facility Ag…**: Avendus Finance Private Limited, SP Finance, and VLFPL entered into a Facility Agreement…

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