# In the matter of Amrit Jal Ventures Private Limited CP (IB) No. 192-7-HDB-2017

> NCLT judgment dated 2019-05-07. Citation: TCN-2019-NCLT-03418. The case involves a petition filed by SEW Infrastructure Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 7 May 2019
- **Citation:** TCN-2019-NCLT-03418
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/amrit-jal-ventures-private-limited-cp-ib-no-192-7-hdb-2017-955a91c3

## Summary

### Background

The case involves a petition filed by SEW Infrastructure Limited, the Financial Creditor, against Amrit Jal Ventures Private Limited, the Corporate Debtor, for defaulting on a repayment of Rs. 7,88,15,181. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP), granting of moratorium, and appointment of an Interim Resolution Professional (IRP). The Corporate Debtor argued against the initiation of CIRP, citing disputes in account reconciliation and the existence of an arbitration clause in the Inter-Corporate Deposit (ICD) agreement.

## Facts

SEW Infrastructure Limited (Financial Creditor) filed a petition against Amrit Jal Ventures Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, due to a default in repayment of Rs. 7,88,15,181. The basis for the claim was an Inter-Corporate Deposit (ICD) Agreement dated 30.06.2011, where the Corporate Debtor borrowed Rs. 4,00,00,000 from the Financial Creditor, to be repaid within 12 months with 24% interest per annum. The Corporate Debtor failed to repay the loan and requested an extension until 31.03.2015. The Corporate Debtor argued that there was a dispute regarding reconciliation of accounts and relied on a Memorandum of Understanding (MOU) dated 20.05.2016. The Financial Creditor contended that the Corporate Debtor had

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in …

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

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**Reasoning:** The court found that the Financial Creditor provided sufficient evidence of the

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**Interpretation:** Section 7 of the IBC requires the Adjudicating Authority to be satisfied that a

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**Application:** The court applied the principle of Section 7 of the IBC to the facts of the

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## Parties

- **Judges:** Ratakonda…
- **Appellants:** Sew Infrastructure…
- **Respondents:** Amrit Jal…

## Timeline

- **2011-06-30 — ICD Agre…**: M/s SEW Infrastructure Limited and M/s Amrit Jal Ventures Private Limited entered into an…
- **2013-12-13 — ICD Agreement…**: The Inter Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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