# In the matter of Altech Infrastructure Private Limited (IB)-686(ND)-2019

> NCLT judgment dated 2022-09-16. Citation: TCN-2022-NCLT-01042. M/s. India Factoring & Finance Solutions Private Limited, the Applicant/Financial Creditor,…

- **Court:** NCLT
- **Order date:** 16 Sept 2022
- **Citation:** TCN-2022-NCLT-01042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/altech-infrastructure-private-limited-ib-686nd-2019-ce8f70e7

## Summary

### Background

M/s. India Factoring & Finance Solutions Private Limited, the Applicant/Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Altech Infrastructure Private Limited, the Respondent/Corporate Debtor. The Applicant had provided trade finance facilities to the Respondent, which the Respondent defaulted on. The application was initially dismissed due to a settlement, but was later revived after the Respondent's post-dated cheques were dishonored. The Applicant claimed a default amount of Rs. 2,18,07,144.95 as of 30.06.2021.

## Facts

M/s. India Factoring & Finance Solutions Private Limited (Applicant/Financial Creditor) provided trade finance facilities to M/s. Altech Infrastructure Private Limited (Respondent/Corporate Debtor). The initial facility was provided vide Facility Letter dated 31.05.2017, with a funds-in-use limit of Rs 5,25,00,000/-, which was later amended on 31.10.2017 to Rs. 8,25,00,000/-. The Respondent defaulted on repayment, leading to a sum of Rs. 3,91,11,953/- due as on 08.01.2019. The Applicant sent a demand letter on 14.01.2019. Initially, the parties settled, with the Respondent making a part-payment of Rs 1 Crore and issuing post-dated cheques. The application was dismissed on 16.09.2019 due to the settlement. However, the post-dated cheques were dishonored, leading the

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## Issues and analysis

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

**Ratio:** The Adjudicating Authority has the power to direct amendment of application to cure

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**Reasoning:** The court noted that the Applicant had amended Part IV of the application to include the

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**Interpretation:** Section 7 of the IBC requires the application to be complete in all respects.

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**Application:** The Applicant amended the application to include the date of default, thus

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## Parties

- **Judges:** Sh. Dharminder…; SH. L. N.…
- **Appellants:** M/s. India…
- **Respondents:** M/s. Altech…

## Timeline

- **2017-05-31 — Facility…**: Applicant provided trade finance facility to Respondent with funds in use limit upto Rs…
- **2017-10-31 — Amended Facili…**: Facility limit amended…

## 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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