# In the matter of Amrit Jal Ventures Pvt. Ltd. CP (IB) No. 21-7-HDB-2018

> NCLT judgment dated 2018-10-24. Citation: TCN-2018-NCLT-00503. SREI Infrastructure Finance Limited, the Financial Creditor, filed a petition under Section 7…

- **Court:** NCLT
- **Order date:** 24 Oct 2018
- **Citation:** TCN-2018-NCLT-00503
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/amrit-jal-ventures-pvt-ltd-cp-ib-no-21-7-hdb-2018-114d9a08

## Summary

### Background

SREI Infrastructure Finance Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Amrit Jal Ventures Private Limited, the Corporate Debtor, for defaulting on a payment of Rs. 45,03,86,213/-. The Financial Creditor and Corporate Debtor entered into a Rupee Loan Agreement (RLA) on 19.04.2011, where the Financial Creditor agreed to provide a loan facility of Rs. 80 crores. The Corporate Debtor allegedly defaulted on the repayment. The Corporate Debtor contended that the petition was untenable because the Financial Creditor had already invoked the shares pledged by the Corporate Debtor, and that the Financial Creditor had not disbursed the entire loan amount. The Corporate Debtor also initiated

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## Facts

SREI Infrastructure Finance Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Amrit Jal Ventures Private Limited (Corporate Debtor) claiming a default of Rs. 45,03,86,213/-. The Financial Creditor and Corporate Debtor entered into a Rupee Loan Agreement (RLA) on 19.04.2011, where the Financial Creditor agreed to provide a loan facility of Rs. 80 crores. Only Rs. 30 crores was disbursed. The RLA was amended on 03.06.2011. The Corporate Debtor pledged shares as security under the RLA. The Corporate Debtor alleges that the Financial Creditor invoked the pledged shares, becoming a shareholder with 44.30% stake, and that the value of the invoked shares (Rs. 161.14 crores) exceeded the outstanding debt. The

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## Issues and analysis

### Issue 1: Whether the Financial Creditor can initiate proceedings under Section 7 of the IBC when arbitration …

**Ratio:** The existence of an arbitration clause or pending arbitration proceedings is not a bar to

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**Reasoning:** The NCLT considered the arguments that the arbitration proceedings and the invocation of

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**Interpretation:** The interpretation of Section 7 of the IBC allows for the initiation of

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**Application:** In this case, the NCLT found that the Financial Creditor's invocation of the

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## Parties

- **Judges:** Ratakonda…
- **Appellants:** Srei Infrastructur…
- **Respondents:** Amrit Jal…

## Timeline

- **1985-03-29 — Incorporation of…**: M/s SREI Infrastructure…
- **2001-06-18 — Incorporation of…**: M/s Amrit Jal Ventures…

## 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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