# In the matter of AKR Construction Limited CP (IB) No.207-7-HDB-2022

> NCLT judgment dated 2023-03-23. Citation: TCN-2023-NCLT-04094. This case involves an application filed by SREI Equipment Finance Limited (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 23 Mar 2023
- **Citation:** TCN-2023-NCLT-04094
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/akr-construction-limited-cp-ib-no207-7-hdb-2022-3c3982e5

## Summary

### Background

This case involves an application filed by SREI Equipment Finance Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code (IBC) against AKR Construction Limited (Corporate Debtor), alleging non-payment of Rs. 2,77,77,89,288/-. The Financial Creditor claims to have granted credit facilities to the Corporate Debtor amounting to Rs. 43,96,27,959/-. The Corporate Debtor denies the debt, alleging that the Financial Creditor fabricated documents and that the claim is barred by limitation. The Corporate Debtor also contends that the Financial Creditor failed to provide necessary details regarding the disbursed amounts and the hypothecated vehicles.

## Facts

SREI Equipment Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against AKR Construction Limited (Corporate Debtor), claiming a default of Rs. 2,77,77,89,288/-. The Financial Creditor asserts that it had extended credit facilities to the Corporate Debtor amounting to Rs. 43,96,27,959/- for business purposes. The Corporate Debtor allegedly executed Deeds of Hypothecation and created a charge on machinery and equipment. The Corporate Debtor failed to make repayments despite repeated requests. The Financial Creditor issued a demand notice dated 29.03.2022. The Corporate Debtor denies the debt, claiming the Financial Creditor fabricated documents, the claim is time-barred, and that the Financial Creditor

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## Issues and analysis

### Issue 1: Whether a financial debt as claimed by the financial creditor is due and payable by the corporate …

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

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**Reasoning:** The NCLT examined the records, including the Corporate Debtor's balance sheet entries,

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**Interpretation:** The Hon'ble Supreme Court has held that entries in books of accounts and/or

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**Application:** The NCLT applied the principle that entries in the Corporate Debtor's balance

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** SREI EQUIPMENT…
- **Respondents:** AKR Construction…

## Timeline

- **2022-02-28 — Date of D…**: The Financial Creditor claims the Corporate…
- **2022-03-23 — Order Da…**: The NCLT passed an order admitting 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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