# In the matter of Haryana Steel & Alloys Limited CP (IB) No. 381-Chd-Hry-2018

> NCLT judgment dated 2019-02-13. Citation: TCN-2019-NCLT-04857. The Alchemist Asset Reconstruction Company Limited, acting as the financial creditor, filed a…

- **Court:** NCLT
- **Order date:** 13 Feb 2019
- **Citation:** TCN-2019-NCLT-04857
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/haryana-steel-alloys-limited-cp-ib-no-381-chd-hry-2018-3917db8f

## Summary

### Background

The Alchemist Asset Reconstruction Company Limited, acting as the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Haryana Steel & Alloys Limited, the corporate debtor. The petitioner's application was supported by an affidavit from Mr. Amrit Agrawal, Chief Financial Advisor. The corporate debtor was incorporated in 1969 and had availed loan facilities from IFCI Ltd. and Industrial Investment Bank of India (IIBI) in 1993 and 1997 respectively. The corporate debtor defaulted on loan repayments, leading to IFCI Ltd. issuing a recall notice in 1999. Subsequently, IFCI Ltd. filed OA No.390/2000 before the Debts Recovery Tribunal-l, Delhi. The debt was

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## Facts

Alchemist Asset Reconstruction Company Limited (Petitioner), a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Haryana Steel & Alloys Limited (Respondent), the corporate debtor. The petitioner's claim is based on the corporate debtor's default on loan facilities originally granted by IFCI Ltd. and Industrial Investment Bank of India (IIBI). IFCI Ltd. granted loans to the corporate debtor in 1993 and 1994, but the corporate debtor failed to abide by the terms of the loan and defaulted. IFCI Ltd. issued a recall notice on 19.11.1999 for ₹4,40,90,557/- plus interest. IFCI Ltd. then filed OA No.390/2000 before the Debts Recovery Tribunal-I, Delhi. The

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## Issues and analysis

### Issue 1: Whether the petitioner, Alchemist Asset Reconstruction Company Limited, has met the requirements of …

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

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**Reasoning:** The court reasoned that the petitioner had provided sufficient evidence of the corporate

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**Interpretation:** Section 7 is interpreted to mean that if a financial creditor can demonstrate a

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**Application:** In this case, the petitioner provided evidence of loan agreements with IFCI

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Alchemist Asset…
- **Respondents:** Haryana Steel &…

## Timeline

- **1969-12-10 — Incorporation of…**: Haryana Steel & Alloys Limited was incorporated as a company under the Companies Act,…
- **1993-01-01 — Loan Facilities from…**: Haryana Steel & Alloys Limited approached IFCI Ltd. for loan facilities under the…

## 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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