# In the matter of A P F Estates Private Limited

> NCLT judgment dated 2024-08-28. Citation: TCN-2024-NCLT-00742. The case involves a petition filed by M/s.Invent Assets Securitization and Reconstruction…

- **Court:** NCLT
- **Order date:** 28 Aug 2024
- **Citation:** TCN-2024-NCLT-00742
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/a-p-f-estates-private-limited-466ecc86

## Summary

### Background

The case involves a petition filed by M/s.Invent Assets Securitization and Reconstruction Private Limited (Petitioner) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s.APF Estates Private Limited (Respondent), who acted as a guarantor for a loan taken by M/s.MBX Impex Private Limited (Borrower) from Indian Bank (Lender). The Indian Bank assigned the debt to the petitioner. The borrower defaulted on the loan, leading to the account being classified as NPA. The petitioner invoked the guarantee and filed the petition after the borrower and guarantors failed to repay the debt.

## Facts

M/s.MBX Impex Private Limited (Borrower) took a loan from Indian Bank (Lender). M/s.APF Estates Private Limited (Respondent) acted as a guarantor for the loan. Indian Bank sanctioned open cash credit for Rs.10 crores and bank guarantee of Rs.90 crores in favor of the borrower vide letter Annexure B dated 02.05.2009. The respondent executed a Guarantee Deed Annexure D dated 11.08.2009. The borrower's account became NPA on 31.03.2012. Indian Bank assigned the debt to M/s.Invent Assets Securitization and Reconstruction Private Limited (Petitioner) vide Annexure H dated 30.07.2014. The petitioner issued a notice Annexure G dated 30.04.2012 under Section 13(2) of the SARFAESI Act when the borrower and guarantors failed to repay the loan. The petitioner also filed OA No.463

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## Issues and analysis

### Issue 1: Whether the petitioner is a financial creditor under Section 7 of the Insolvency and Bankruptcy …

**Ratio:** The assignment of debt from Indian Bank to the petitioner makes the petitioner a

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**Reasoning:** The court reasoned that the assignment of debt is as per the law, and the learned counsel

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**Interpretation:** The interpretation of Section 7 of the IBC and related regulations allows for

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**Application:** In this case, the Indian Bank assigned the debt to the petitioner, M/s.Invent

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Invest Assets…
- **Respondents:** APF Estates Pvt…

## Timeline

- **2009-05-02 — Sanction of Open Cash…**: Indian Bank sanctioned open cash credit for Rs.10 crores and bank guarantee of Rs.90…
- **2009-08-11 — Execution of Guarantee…**: The respondent executed a…

## 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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