# In the matter of Alumass Private Limited

> NCLT judgment dated 2024-04-04. Citation: TCN-2024-NCLT-01832. The case pertains to an application filed by Small Industries Development Bank of India (SIDBI)…

- **Court:** NCLT
- **Order date:** 4 Apr 2024
- **Citation:** TCN-2024-NCLT-01832
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alumass-private-limited-62f78039

## Summary

### Background

The case pertains to an application filed by Small Industries Development Bank of India (SIDBI) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against Alumass Private Limited due to a default in repayment of loans. SIDBI had granted loan facilities to Alumass Private Limited, including a RCF subordinated loan and a FITL loan. The applicant claims a default amount of Rs. 1,02,33,203/-. The application was filed on 21.08.2023.

## Facts

Small Industries Development Bank of India (SIDBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Alumass Private Limited. SIDBI had granted loan facilities to Alumass Private Limited, including a RCF subordinated loan and a FITL loan. The respondent approached the applicant for a facility of RCF subordinated loan and FITL loan amounting to Rs.100 lakhs and Rs.4.56 lakhs respectively. The applicant gave loan amounting to Rs.100 lakhs under the Growth Capital & Equity Assistance Scheme for MSMEs (GEMS) for meeting margin money for working capital of the company for its plant located at Plot No.81A/82C, Dewas Industrial Area, Sector-1, AB Road, Dewas (MP) at a

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## Issues and analysis

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

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

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**Reasoning:** The court considered the applicant's claim that the corporate debtor defaulted on its

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to recover

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**Application:** The applicant, being a financial creditor, filed the application under Section

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## Parties

- **Judges:** P. Moha…; KAUSHALENDRA…
- **Appellants:** M/s Small…
- **Respondents:** M/s Alumass…; M/s Alumass Pvt…

## Timeline

- **1990-04-02 — SIDBI Incorp…**: Small Industries Development Bank…
- **2015-11-18 — Letter of…**: Applicant issued a letter 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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