# In the matter of Adkure Technologies Private Limited CP (IB) -1201-MB-2020

> NCLT judgment dated 2020-01-21. Citation: TCN-2020-NCLT-02238. Small Industries Development Bank of India (SIDBI) filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 21 Jan 2020
- **Citation:** TCN-2020-NCLT-02238
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adkure-technologies-private-limited-cp-ib-1201-mb-2020-a93609e1

## Summary

### Background

Small Industries Development Bank of India (SIDBI) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Adkure Technologies Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). SIDBI had sanctioned a loan to Adkure Technologies for setting up a pharmaceutical manufacturing plant. Disputes arose among the shareholders of Adkure Technologies, leading to delays in the commencement of commercial production. Adkure Technologies defaulted on its loan repayment obligations, resulting in SIDBI declaring the account as a Non-Performing Asset (NPA) and initiating the CIRP.

## Facts

Small Industries Development Bank of India (SIDBI) sanctioned a loan to Adkure Technologies Private Limited for setting up a pharmaceutical manufacturing plant under the "SIDBI Make in India Soft Loan Fund for Micro, Small and Medium Enterprises (SMILE) Scheme". The loan amount was Rs. 12 crores, comprising Rs. 11.80 crores as a term loan and Rs. 20 lakhs as a soft loan. A Letter of Intent (LoI) was issued on 13.10.2016, and a Loan Agreement was executed on 17.02.2017. Securities in the form of mortgage, hypothecation, and personal guarantees were created in favor of SIDBI. The commercial production was originally scheduled for 31.12.2017 but was extended to 31.12.2019. Adkure Technologies failed to commence commercial production and defaulted on its loan

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in repayment of its financial debt to the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

…

**Reasoning:** The NCLT observed that the Corporate Debtor had admitted its dues to the Financial

…

**Interpretation:** The interpretation of Section 7 of the IBC, as clarified by the Supreme Court

…

**Application:** The NCLT applied the ratio of Section 7 of the IBC and the Supreme Court's

…

## Parties

- **Judges:** SUCHITRA KANUPARTH…; Chandra Bha…; +1 more
- **Appellants:** Small Industries…
- **Respondents:** Adkure Technologie…; Atul Um…
- **Advocates:** Abhishek…; Vineet Shri…; +3 more

## Timeline

- **2016-10-13 — Letter of Intent (LoI)…**: Letter of Intent (LoI) dated 13.10.2016…
- **2017-02-17 — Loan Agreement…**: Loan Agreement dated 17.02.2017 was executed between the Petitioner and the Corporate…

---

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/nclt-chandigarh/adkure-technologies-private-limited-cp-ib-1201-mb-2020-a93609e1