# In the matter of Alstrong Enterprises India Private Limited IA. NO. 4488-ND-2022 in Company Petition No. (IB)-913(ND)-2020

> NCLT judgment dated 2023-04-21. Citation: TCN-2023-NCLT-03686. SREI Infrastructure Finance Limited, the Financial Creditor, filed an application under Section…

- **Court:** NCLT
- **Order date:** 21 Apr 2023
- **Citation:** TCN-2023-NCLT-03686
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alstrong-enterprises-india-private-limited-ia-no-4488-nd-2022-in-company-petitio-10cab198

## Summary

### Background

SREI Infrastructure Finance Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Alstrong Enterprises India Private Limited, the Corporate Debtor. The application was based on a default in repayment of a loan facility. The Corporate Debtor raised several defenses, including the transfer of the loan account to SREI Equipment Finance Limited, the lack of disbursement to the Corporate Debtor, and the application being barred by Section 10A of the IBC. The Adjudicating Authority considered the arguments of both parties and examined the documents on record.

## Facts

SREI Infrastructure Finance Limited (SREI) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Alstrong Enterprises India Private Limited (Alstrong). SREI claimed a default of Rs. 104,97,68,105/- as of 06.02.2020. SREI had granted a loan facility of Rs. 100,00,00,000/- to Alstrong and Worlds Window Infrastructure & Logistics Pvt. Ltd. (WWILPL). The loan agreement, dated 07.07.2018, identified both Alstrong and WWILPL as 'Borrowers', making them jointly and severally liable. Alstrong's financial statements for the period ended 31st March 2019 disclosed that it was a co-borrower for the loan taken by WWILPL. SREI disbursed the loan in three tranches: Rs. 40 crores on

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is maintainable against Alstrong Enterprises …

**Ratio:** The principle of joint and several liability under Section 43 of the Indian Contract Act,

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**Reasoning:** The Adjudicating Authority relied on the common loan agreement, which defined both the

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**Interpretation:** The interpretation of Section 43 of the Indian Contract Act, 1872, establishes

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**Application:** The principle of joint and several liability was applied to the facts of the

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## Parties

- **Judges:** SH. BACHU VENKAT…; SH. L. N.…
- **Respondents:** Alstrong Enterpris…; M/s. Alstrong…
- **Advocates:** Apoorv Ag…; Riya Th…

## Timeline

- **2018-07-07 — Loan Agreeme…**: Common Loan Agreement No. SRE 760 was executed between SREI Infrastructure Finance…
- **2018-06-18 — Sanction Lett…**: SREI Infrastructure Finance Limited agreed to grant financial assistance 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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