# In the matter of Assam Company India Ltd. Diary No. 529-2017

> NCLT judgment dated 2017-10-26. Citation: TCN-2017-NCLT-00260. Seri Infrastructure (P) Ltd. filed an application under Section 7 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 26 Oct 2017
- **Citation:** TCN-2017-NCLT-00260
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/assam-company-india-ltd-diary-no-529-2017-442dcdd1

## Summary

### Background

Seri Infrastructure (P) Ltd. filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of corporate insolvency resolution process against Assam Company India Ltd. Seri Infrastructure claimed that Assam Company India Ltd. was a guarantor for a loan taken by Gujrat Hydrocarbons & Power SEZ Limited, which defaulted on its repayment obligations. Seri Infrastructure had also initiated proceedings before the Debt Recovery Tribunal (DRT), Kolkata, for recovery of the same debt.

## Facts

Gujrat Hydrocarbons & Power SEZ Limited (Principal Borrower) approached Seri Infrastructure (P) Ltd. (Financial Creditor) for a term loan of Rs. 100 crores. The loan was granted with the condition that it would be repaid with interest in four equal quarterly installments. Assam Company India Ltd. (Corporate Debtor) acted as one of the guarantors for the loan, executing an irrevocable, unconditional, and continuing guarantee in favor of Seri Infrastructure. The principal borrower defaulted on the repayment schedule, leading Seri Infrastructure to issue a notice to the principal debtor. Seri Infrastructure also filed an application under Section 19 of the Debt Recovery Tribunal Act. The principal debtor failed to repay the loan, Seri Infrastructure filed an

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## Issues and analysis

### Issue 1: Whether the person who submitted the application on behalf of the Financial Creditor had proper …

**Ratio:** A valid power of attorney, even if titled as such, constitutes sufficient authorization

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**Reasoning:** The NCLT relied on the decision of the NCLAT in Palogix Infrastructure Pvt. Ltd. Vs ICICI

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**Interpretation:** The term 'power of attorney' should not be interpreted restrictively to

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**Application:** The NCLT found that the power of attorney granted to Mr. Somraj Mukherjee by

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## Parties

- **Judges:** P. K. S…
- **Appellants:** Seri Infrastructur…
- **Respondents:** Assam Company…

## Timeline

- **2011-01-05 — Loan Agre…**: Assam Company India Ltd. executed an irrevocable, unconditional, and continuing guarantee…
- **2012-12-15 — Default…**: Principal borrower failed to repay the loan in accordance with repayment schedule for…

## 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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