# In the matter of Shree Ram Urban Infrastructure Limited CP(IB)No.494-NCLT-MB-2019

> NCLT judgment dated 2019-11-06. Citation: TCN-2019-NCLT-00698. This is an application filed by Srei Equipment Finance Limited, a Non-Banking Financial…

- **Court:** NCLT
- **Order date:** 6 Nov 2019
- **Citation:** TCN-2019-NCLT-00698
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-ram-urban-infrastructure-limited-cpibno494-nclt-mb-2019-8bb4b4a1

## Summary

### Background

This is an application filed by Srei Equipment Finance Limited, a Non-Banking Financial Company, under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against Shree Ram Urban Infrastructure Limited, Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The claim amounts to ₹327,03,27,748/- as of 07.01.2019, including interest on the principal sum of ₹182,87,36,261/-. The applicant extended financial assistance to the Corporate Debtor under three agreements.

## Facts

Srei Equipment Finance Limited, a Non-Banking Financial Company, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shree Ram Urban Infrastructure Limited, claiming a total amount of ₹327,03,27,748/- as of 07.01.2019, which includes interest on a principal sum of ₹182,87,36,261/-. The financial assistance was extended under three agreements: Agreement No.99684 dated 22.12.2015, Agreement No. 106008 dated 12.04.2016, and Agreement No.14673 dated 24.11.2017, with an interest rate of 17.75% per annum. The last payment received from the Corporate Debtor was ₹143,90,732/- on 24.11.2017. The Corporate Debtor defaulted in repayment, as reported to TransUnion CIBIL, which

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the I&B Code, 2016 is complete and admissible …

**Ratio:** The adjudicating authority has merely to see the records of the information utility or

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**Reasoning:** The court relied on the Supreme Court's judgment in Innoventive Industries Limited v.

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**Interpretation:** Section 7 of the I&B Code allows a financial creditor to initiate CIRP if a

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**Application:** The court found that the applicant provided sufficient evidence of financial

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## Parties

- **Judges:** Mr Bhaskara…; Mr Rajesh…
- **Appellants:** SREI Equipment…
- **Respondents:** Shree Ram Urban…

## Timeline

- **2015-12-22 — Agreement…**: Agreement No.99684 was…
- **2016-04-12 — Agreement…**: Agreement No. 106008…

## 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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