# In the matter of Moser Baer India Ltd. C.P. No. IB-378-(PB)-2017

> NCLT judgment dated 2017-11-14. Citation: TCN-2017-NCLT-00203. Alchemist Asset Reconstruction Co. Ltd. (AARC), the financial creditor, filed an application…

- **Court:** NCLT
- **Order date:** 14 Nov 2017
- **Citation:** TCN-2017-NCLT-00203
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/moser-baer-india-ltd-cp-no-ib-378-pb-2017-d4e0e55b

## 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. The financial creditor acquired the secured debt of State Bank of Hyderabad (now merged with State Bank of India) through an assignment deed dated 30.03.2016. The corporate debtor was admitted to the Board for Industrial and Financial Reconstruction (BIFR), but the reference abated due to the Sick Industrial Companies (Special Provisions) Repeal Act, 2003.

## 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. (MBIL). 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 total outstanding debt of MBIL to AARC as of 10.09.2017 was Rs. 1,85,37,13,958/-. The account of MBIL was declared NPA on 26.11.2014. AARC issued a recall notice on 04.04.2017, but MBIL defaulted on payment. MBIL was previously registered with BIFR, but the reference abated on 01.12.2016. The Corporate Debtor did not oppose the application. The financial creditor provided evidence of the debt, including

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, should be …

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

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**Reasoning:** The court found that the financial creditor, AARC, had provided sufficient evidence to

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**Interpretation:** Section 7 of the IBC is interpreted to provide a mechanism for financial

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**Application:** The court applied the provisions of Section 7 to the facts of the case, finding

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## Parties

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

## Timeline

- **2016-03-30 — Assignmen…**: Alchemist Asset Reconstruction Co. Ltd. acquired the secured debt of State Bank of…
- **2014-11-26 — Account Decla…**: The account of Moser Baer India Ltd. was…

## 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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