# In the matter of Anupam Extractions Limited CP(IB)No.2781-NCLT-MB-2018

> NCLT judgment dated 2019-07-16. Citation: TCN-2019-NCLT-02499. A.K Corporation, a sole proprietorship, filed a petition under Section 7 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 16 Jul 2019
- **Citation:** TCN-2019-NCLT-02499
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/anupam-extractions-limited-cpibno2781-nclt-mb-2018-1a0980ac

## Summary

### Background

A.K Corporation, a sole proprietorship, filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Anupam Extractions Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The petition was filed on 18th July 2018, claiming a total default of ₹74,33,697.94 as of 31st March 2018. The petitioner, Ashok Kumar Basudeo Saraf, provided financial assistance to the Corporate Debtor in the form of a loan. The Corporate Debtor failed to repay the loan amount of ₹26,80,666/- along with interest. The Respondent argued that the petition was barred by limitation and that the amount claimed was in dispute due to mismanagement by the Petitioner when he was a Director of the Respondent Company.

## Facts

A.K Corporation, a sole proprietorship owned by Ashok Kumar Basudeo Saraf, filed a petition against Anupam Extractions Limited, claiming a default of ₹74,33,697.94 as of March 31, 2018. This amount includes a principal loan of ₹26,80,666/- disbursed between May 24, 2006, and March 31, 2007, and accrued interest. Ashok Kumar Basudeo Saraf was previously a Director in Anupam Extractions Limited. The Respondent argued that the loan was reflected as 'Unsecured Loan from Director' or 'Loans from Shareholders' in the audited accounts. The Respondent also claimed that the petition was barred by limitation and that the default was disputed due to mismanagement by the Petitioner during his tenure as a Director. The Petitioner submitted letters seeking repayment of the loan and

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## Issues and analysis

### Issue 1: Whether the petition filed by A.K Corporation under Section 7 of the I&B Code, 2016, is …

**Ratio:** The ratio is based on Section 7 of the I&B Code, which allows a financial creditor to

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**Reasoning:** The court reasoned that the Petitioner had demonstrated the existence of a financial debt

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**Interpretation:** Section 7 of the I&B Code is interpreted to mean that if a financial debt

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**Application:** The court applied the ratio to the facts by finding that the Petitioner had

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## Parties

- **Judges:** Mr V.P.…; Ravikumar…; +2 more
- **Appellants:** A.K Corpo…
- **Respondents:** Anupam Extractions…

## Timeline

- **2006-05-24 — Loan Disbursem…**: Petitioner disbursed…
- **2007-03-31 — Loan Disburse…**: Petitioner disbursed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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