# In the matter of Alchemist Infra Realty Limited Company Petition (IB)-635(PB)-2021

> NCLT judgment dated 2022-03-23. Citation: TCN-2022-NCLT-03578. This is an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 23 Mar 2022
- **Citation:** TCN-2022-NCLT-03578
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alchemist-infra-realty-limited-company-petition-ib-635pb-2021-01a9060f

## Summary

### Background

This is an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Alchemist Infra Realty Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). Technology Parks Limited (Financial Creditor/Applicant) advanced loans to the Corporate Debtor. They entered into a loan agreement on 2016-08-01. The Board of Directors of the Financial Creditor passed a resolution on 2018-06-25, to not exercise the call option, available under the agreement dated 2016-08-01. The Corporate Debtor was called upon to repay the borrowed amount of Rs. 3,29,05,00,000 on or before 2019-06-30, along with interest from 2018-07-01. A supplementary agreement was executed on 2018-12-31, which recorded that the amount of Rs.

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## Facts

Technology Parks Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Alchemist Infra Realty Limited (Corporate Debtor). The Financial Creditor had advanced loans and advances to the Corporate Debtor over time. A loan agreement was entered into on 2016-08-01, with a loan tenure of three years starting from 2016-06-30. The agreement included a call option for the Financial Creditor, which they resolved not to exercise on 2018-06-25. Instead, they sought a return of the loan with interest. The Corporate Debtor was required to repay Rs. 3,29,05,00,000 by 2019-06-30, with interest from 2018-07-01. A supplementary agreement on 2018-12-31, stated that

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The NCLT found that the application was complete, a default had occurred, and the debt

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The NCLT applied Section 7 to the facts of the case, noting that the Financial

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## Parties

- **Judges:** Ramalingam…; HEMANT KUMAR…
- **Appellants:** Technology Parks…
- **Respondents:** Alchemist Infra…
- **Advocates:** Ravinder…; Raveesha…; +2 more

## Timeline

- **2016-08-01 — Loan Agre…**: Technology Parks Limited and Alchemist Infra…
- **2016-06-30 — Loan Tenure…**: The tenure of the loan…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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