# In the matter of AKR Holding Private Limited

> NCLT judgment dated 2024-01-05. Citation: TCN-2024-NCLT-03296. The case involves multiple applications (IA IBC 784/2022, MA IBC 123/2021, and IA IBC 640/2022)…

- **Court:** NCLT
- **Order date:** 5 Jan 2024
- **Citation:** TCN-2024-NCLT-03296
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/akr-holding-private-limited-640b2c2b

## Summary

### Background

The case involves multiple applications (IA IBC 784/2022, MA IBC 123/2021, and IA IBC 640/2022) filed in the Corporate Insolvency Resolution Process (CIRP) of AKR Holdings Private Limited. The CIRP was initiated based on an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) 2016 by a financial creditor, M/s Global Infra. The corporate debtor was sent to liquidation. The core dispute revolves around the distribution of proceeds from the sale of the corporate debtor's immovable property, specifically concerning the claims of two financial creditors: Indian Overseas Bank (IOB) and Tamilnad Mercantile Bank (TMB). The liquidator sought directions regarding the handover of original title documents, while IOB sought a declaration that TMB be treated as an

…

## Facts

AKR Holdings Private Limited (Corporate Debtor) underwent Corporate Insolvency Resolution Process (CIRP) initiated by M/s Global Infra. The CIRP led to liquidation, with N. Kumar appointed as the liquidator. The corporate debtor had provided a corporate guarantee to IOB for facilities availed by AKR Home Depot Pvt Ltd and AKR Infrastructure Ltd, who defaulted on repayments, leading to NPA classification. IOB filed OA no 682 of 2015 in Debt Recovery Tribunal (DRT) against its borrowers, including the corporate debtor, and obtained a Recovery Certificate dated 21.09.2017 for Rs.11,27,57,994.98. The corporate debtor also stood as a corporate guarantor to TMB for facilities availed by M/s. Matrix Metal Traders Pvt Ltd and created a mortgage on property at 60 MKN Road,

…

## Issues and analysis

### Issue 1: Whether Indian Overseas Bank (IOB) qualifies to be treated as a secured creditor under the …

**Ratio:** A creditor can be treated as a secured creditor if they have a security interest created

…

**Reasoning:** The court considered that IOB had a Memorandum of Title Deeds created by the Corporate

…

**Interpretation:** The interpretation of Section 3(30) and 3(31) of IBC, Regulation 21 of IBBI

…

**Application:** In this case, IOB had a mortgage of two properties of the Corporate Debtor and

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** N. Ku…
- **Respondents:** AKR Holdings…; Indian Overseas…

## Timeline

- **2010-10-29 — Acquisition of…**: Corporate Debtor acquired property vide Sale Deed bearing document no 5311 of SRO…
- **2010-11-11 — Deposit of Tit…**: AKR Holdings Pvt Ltd deposited title deeds with IOB for property measuring 6568 sq.ft. in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(1) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/akr-holding-private-limited-640b2c2b