# In the matter of Unitek Power Solutions India Limited CP-91-IB-2018

> NCLT judgment dated 2019-01-01. Citation: TCN-2019-NCLT-05360. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Jan 2019
- **Citation:** TCN-2019-NCLT-05360
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/unitek-power-solutions-india-limited-cp-91-ib-2018-08dfdfd5

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by JM Financial Asset Reconstruction Company Limited against Unitek Power Solutions India Limited. The financial creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, declare a moratorium, and appoint an Interim Resolution Professional (IRP). The corporate debtor initially filed an affidavit outlining a settlement plan with proposed payment dates, but failed to make any payments. The corporate debtor's counsel raised an objection regarding the jurisdiction of the NCLT, Chennai Bench, arguing that the matter fell

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## Facts

JM Financial Asset Reconstruction Company Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Unitek Power Solutions India Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The corporate debtor had availed various credit facilities from Federal Bank Limited, which were later assigned to JM Financial Asset Reconstruction Company Limited. The outstanding debt as of 31.12.2017 was Rs.23,55,81,656.54p. The corporate debtor initially proposed a settlement plan but failed to make any payments. The corporate debtor raised a jurisdictional objection, arguing that the matter fell under the jurisdiction of the NCLT, Cochin Bench. The financial creditor had also initiated SARFAESI proceedings and filed

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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 court found that the financial creditor had provided sufficient evidence to

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

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**Application:** In this case, the financial creditor, JM Financial Asset Reconstruction Company

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** JM Financial…
- **Respondents:** Unitek Power…; Unitek Power…

## Timeline

- **2018-01-01 — Application…**: CP/91/IB/2018 filed under Section 7 of the…
- **2018-07-09 — Affidavit Filed by…**: The Corporate Debtor filed an Affidavit on 09.07.2018 providing outlines of 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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