# In the matter of R.K. Jain Construction (India) Pvt. Ltd. CP (IB) No. 54-CTB-2019

> NCLT judgment dated 2019-10-03. Citation: TCN-2019-NCLT-01095. The case involves an application filed by M/s ASREC (India) Limited under Section 7 of the…

- **Court:** NCLT
- **Order date:** 3 Oct 2019
- **Citation:** TCN-2019-NCLT-01095
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rk-jain-construction-india-pvt-ltd-cp-ib-no-54-ctb-2019-92d2a5a9

## Summary

### Background

The case involves an application filed by M/s ASREC (India) Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s R.K. Jain Construction (India) Pvt. Ltd. The application was filed due to a default on a loan availed by the Corporate Debtor from Allahabad Bank, which was later assigned to the applicant.

## Facts

M/s ASREC (India) Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s R.K. Jain Construction (India) Pvt. Ltd. The Corporate Debtor had availed a loan of 15.95 Crores from Allahabad Bank, sanctioned on 2010-06-30. The loan was secured by hypothecation and mortgage of movable and immovable properties. Allahabad Bank initiated recovery proceedings under the SARFAESI Act. Subsequently, Allahabad Bank assigned the loan to M/s ASREC (India) Limited via a Deed of Assignment dated 2017-07-17. The applicant claimed that a sum of Rs. 28,64,67,561/- was due and payable by the Corporate Debtor. The Corporate Debtor was served notice but remained unrepresented, leading to

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency & …

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

…

**Reasoning:** The court found that the debt and default were proved beyond reasonable doubt based on

…

**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

…

**Application:** The court applied Section 7 to the facts of the case, noting that the Financial

…

## Parties

- **Judges:** Sucharit…; Satya Ranjan…
- **Appellants:** M/s. ASREC…
- **Respondents:** M/s R.K. Jain…

## Timeline

- **2010-06-30 — Loan Sanc…**: Allahabad Bank sanctioned a loan of 15.95 Crores to M/s R.K. Jain Construction (India)…
- **2017-07-17 — Deed of Ass…**: Allahabad Bank assigned the loan…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/rk-jain-construction-india-pvt-ltd-cp-ib-no-54-ctb-2019-92d2a5a9