# In the matter of Anandram Developers Private Limited CP-603-(IB)-CB-2017

> NCLT judgment dated 2018-06-06. Citation: TCN-2018-NCLT-01319. The case involves an application filed by Asset Reconstruction Company (India) Limited (ARCIL),…

- **Court:** NCLT
- **Order date:** 6 Jun 2018
- **Citation:** TCN-2018-NCLT-01319
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/anandram-developers-private-limited-cp-603-ib-cb-2017-939d5382

## Summary

### Background

The case involves an application filed by Asset Reconstruction Company (India) Limited (ARCIL), the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Anandram Developers Private Limited, the Corporate Debtor. The application seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, declare a moratorium, and appoint an Interim Resolution Professional (IRP). The Corporate Debtor had taken loans from Indian Overseas Bank (IOB) and Oriental Bank of Commerce (OBC), which were subsequently assigned to ARCIL. The Corporate Debtor defaulted on payments, leading to the filing of the application.

## Facts

On 2005-11-28, Indian Overseas Bank (IOB) sanctioned a Term Loan of Rs.30 Crores to Anandram Developers Private Limited (Corporate Debtor). IOB assigned the loans to Asset Reconstruction Company (India) Limited (ARCIL) on 2015-02-10. The Corporate Debtor defaulted on payments. ARCIL filed Original Application No. 430/2014 before Debts Recovery Tribunal-II, Chennai (DRT) on 2012-06-04. The DRT allowed the OA on 2016-10-31, entitling ARCIL to recover Rs.22,77,65,247 with 12% interest. The Debt Recovery Certificate (DRC) was issued quantifying the debt as Rs.34,85,49,748.48. Oriental Bank of Commerce (OBC) sanctioned a Term Loan of Rs.30 Crores on 2006-01-31 and a Funded Interest Term Loan of Rs.2.06 Crores on 2009-06-30. OBC assigned the loans to ARCIL on 2014-03-28.

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The court ascertained the existence of a default on the part of the Corporate Debtor

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The court applied Section 7 to the facts of the case, finding that the

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** Asset Reconstructi…
- **Respondents:** Anandram Developer…; Anandram Developer…

## Timeline

- **2005-11-28 — Loan Sanctione…**: Indian Overseas Bank (IOB) sanctioned a Term…
- **2012-06-04 — OA Filed Bef…**: ARCIL filed Original Application No. 430/2014 before Debts Recovery Tribunal-II, Chennai…

## 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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