# In the matter of Uthrakaliamman Infrastructures Private Limited CP-292-(IB)-CB-2018

> NCLT judgment dated 2018-05-14. Citation: TCN-2018-NCLT-01411. The case involves a petition filed by Edelweiss Asset Reconstruction Company Limited (Financial…

- **Court:** NCLT
- **Order date:** 14 May 2018
- **Citation:** TCN-2018-NCLT-01411
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uthrakaliamman-infrastructures-private-limited-cp-292-ib-cb-2018-5b2a1d55

## Summary

### Background

The case involves a petition filed by Edelweiss Asset Reconstruction Company Limited (Financial Creditor) against Uthrakaliamman Infrastructures Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed that the Corporate Debtor defaulted on payments towards outstanding dues. The Corporate Debtor had obtained credit facilities from State Bank of India (SBI) between 2009 and 2010, amounting to Rs. 64,86,00,000. SBI assigned the debt to the Financial Creditor via an assignment agreement dated 30.03.2015. The Corporate Debtor defaulted in making payments, and the Financial Creditor issued an auction sale notice on 22.01.2018. The

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## Facts

Edelweiss Asset Reconstruction Company Limited (Financial Creditor) filed a petition against Uthrakaliamman Infrastructures Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had obtained credit facilities from State Bank of India (SBI) between 2009 and 2010, amounting to Rs. 64,86,00,000. SBI assigned the debt to the Financial Creditor via an assignment agreement dated 30.03.2015. As of the date of assignment, the total dues were Rs. 112,89,00,000. The Corporate Debtor defaulted in making payments towards the outstanding dues. The Financial Creditor issued an auction sale notice on 22.01.2018 under the SARFAESI Act. The Corporate Debtor filed I.A. No.257 of 2018 before DRT, Coimbatore, seeking a stay of

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## Issues and analysis

### Issue 1: Whether the petition 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 Adjudicating Authority considered the submissions of the counsel for the petitioner

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**Interpretation:** Section 7 provides the legal basis for a financial creditor to initiate CIRP

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**Application:** The Financial Creditor demonstrated the existence of a debt assigned by SBI and

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Uthrakaliamman…

## Timeline

- **2009-01-01 — Credit Facilities…**: Uthrakaliamman Infrastructures Private Limited obtained credit facilities from State Bank…
- **2015-03-30 — Assignment Ag…**: SBI assigned the debt to Edelweiss Asset Reconstruction Company Limited via an assignment…

## 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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