# In the matter of Moser Baer India Limited

> NCLT judgment dated 2017-11-14. Citation: TCN-2017-NCLT-00213. Alchemist Asset Reconstruction Co. Ltd. (AARC), the Financial Creditor, filed an application…

- **Court:** NCLT
- **Order date:** 14 Nov 2017
- **Citation:** TCN-2017-NCLT-00213
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/moser-baer-india-limited-8c4a47c7

## Summary

### Background

Alchemist Asset Reconstruction Co. Ltd. (AARC), the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Moser Baer India Ltd., the Corporate Debtor. AARC acquired the secured debt of State Bank of Hyderabad (now merged with State Bank of India) via an assignment deed dated 30.03.2016. The application was filed due to defaults in repayment of financial debt by Moser Baer India Ltd.

## Facts

Alchemist Asset Reconstruction Co. Ltd. (AARC) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Moser Baer India Ltd. AARC acquired the secured debt of State Bank of Hyderabad (now merged with State Bank of India) via an assignment deed dated 30.03.2016. The financial creditor/applicant was incorporated on 19.09.2002. The corporate debtor was incorporated on 21.03.1983. The total amount of debt disbursed by State Bank of Hyderabad to the Corporate Debtor was Rs. 100.00 Crores, consisting of a Corporate Loan Agreement (Rs. 50.00 Crores disbursed on 25.09.2009) and a Working Capital Facility (Rs. 50.00 Crores disbursed on 31.05.2010). This debt was restructured on

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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 Corporate Debtor did not oppose the application, indicating an acknowledgment of the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** Given the evidence of debt and default, and the lack of opposition from the

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** Alchemist Asset…
- **Respondents:** Moser Baer India…

## Timeline

- **2016-03-30 — Assignmen…**: AARC acquired the secured debt of State…
- **2002-09-19 — Incorporation of…**: Alchemist Asset Reconstruction…

## 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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