# In the matter of Alka India Limited

> NCLT judgment dated 2023-12-18. Citation: TCN-2023-NCLT-00200. Micro Capitals Private Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 18 Dec 2023
- **Citation:** TCN-2023-NCLT-00200
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alka-india-limited-acf9cdfd

## Summary

### Background

Micro Capitals Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Alka India Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to alleged default in repayment of a debt of Rs. 5,26,84,473. The Financial Creditor and K Sera Sera & Vikram Bhatt Studio Virtual World Private Limited entered into a Loan Agreement dated 01.06.2022, with Alka India Limited acting as the guarantor. The borrower failed to make repayments, leading to the Financial Creditor issuing notices and demand notices. Alka India Limited acknowledged the debt but requested extensions due to financial difficulties.

## Facts

Micro Capitals Private Limited (Financial Creditor) filed a petition against Alka India Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, for a default of Rs. 5,26,84,473. The Financial Creditor entered into a Loan Agreement dated 01.06.2022 with K Sera Sera & Vikram Bhatt Studio Virtual World Private Limited (Borrower), with Alka India Limited acting as the guarantor. The loan was disbursed between 02.06.2022 and 26.09.2022, and repayment was due from 01.01.2023. The Borrower failed to repay the loan, leading the Financial Creditor to issue a Request Letter dated 04.01.2023. The Borrower expressed inability to repay due to financial constraints via letter dated 10.01.2023. The Financial Creditor issued a Notice of Occurrence

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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:** The Adjudicating Authority must determine whether there is debt and default. If satisfied

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**Reasoning:** The Tribunal found that the Corporate Debtor had defaulted in payment of the debt availed

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** The Corporate Debtor acknowledged the debt, and the Financial Creditor provided

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Micro Capitals…
- **Respondents:** Alka India…

## Timeline

- **2022-06-01 — Loan Agreeme…**: Loan Agreement entered into between Financial Creditor and K Sera Sera & Vikram Bhatt…
- **2022-06-02 — Loan Disbursem…**: Disbursement of loan amount of…

## 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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