# In the matter of AVJ Infrastructure Private Limited C.P. No. IB-208(PB)-2019

> NCLT judgment dated 2019-09-30. Citation: TCN-2019-NCLT-01176. Oriental Bank of Commerce filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 30 Sept 2019
- **Citation:** TCN-2019-NCLT-01176
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/avj-infrastructure-private-limited-cp-no-ib-208pb-2019-c22b9a7c

## Summary

### Background

Oriental Bank of Commerce filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against AVJ Infrastructure Private Limited. The corporate debtor, AVJ Infrastructure Private Limited, was incorporated on 21.07.2008. The financial creditor claimed that the corporate debtor defaulted on a term loan facility aggregating to Rs. 10.00 Crores sanctioned on 17.12.2013. The loan was to be repaid in 66 equal monthly installments commencing from June 2015. The account of the Corporate Debtor was classified as NPA on 29.01.2017. The financial creditor issued a notice dated 15.03.2017 under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security

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## Facts

Oriental Bank of Commerce (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against AVJ Infrastructure Private Limited (Corporate Debtor). The Corporate Debtor was incorporated on 21.07.2008. The Financial Creditor sanctioned a Term Loan facility of Rs. 10.00 Crores to the Corporate Debtor on 17.12.2013, to participate in the auction for minor Mineral Blocks/Units in Haryana. The loan was to be repaid in 66 equal monthly installments commencing from June 2015. The Corporate Debtor defaulted in repayment, and the account was classified as NPA on 29.01.2017. The Financial Creditor issued a notice under Section 13(2) of the SARFAESI Act on 15.03.2017. The total

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## Issues and analysis

### Issue 1: Whether the requirements of Section 7 of the Insolvency and Bankruptcy Code, 2016 for initiating …

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

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**Reasoning:** The court considered the submissions of the learned counsel for the petitioner, who

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**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial creditor can

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**Application:** In this case, the Financial Creditor, Oriental Bank of Commerce, demonstrated

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## Parties

- **Judges:** M. M. K…; DEEPTI M…
- **Appellants:** Oriental Bank of…
- **Respondents:** AVJ Infrastructure…

## Timeline

- **2008-07-21 — Incorporation of…**: AVJ Infrastructure Private…
- **2013-12-17 — Sanction of T…**: Oriental Bank of Commerce sanctioned a Term Loan facility of Rs. 10.00 Crores to AVJ…

## 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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