# In the matter of Alumass Private Limited

> NCLT judgment dated 2024-04-04. Citation: TCN-2024-NCLT-01842. 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-01842
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alumass-private-limited-bfbe3b34

## 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, acting as the financial creditor, claimed a default amount of Rs. 1,02,33,203/-. Alumass Private Limited, formerly known as Tirupati Balaji Extrusion Private Limited, is the corporate debtor. SIDBI had granted loan facilities to Alumass, including a RCF subordinated loan and a FITL loan. The loans were intended to support Alumass's working capital and provide relief during the Covid-19 moratorium. Despite these facilities, Alumass defaulted on repayments, leading SIDBI

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## 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. Alumass Private Limited, formerly known as Tirupati Balaji Extrusion Private Limited, is the corporate debtor. SIDBI granted loan facilities to Alumass, including a RCF subordinated loan and a FITL loan, amounting to Rs.100 lakhs and Rs.4.56 lakhs respectively. The loans were granted under the Growth Capital & Equity Assistance Scheme for MSMEs (GEMS) to support Alumass's working capital. The interest rate on the loans was 14.75% p.a., repayable in 48 monthly installments. Alumass defaulted on repayments, leading SIDBI to issue loan

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## Issues and analysis

### Issue 1: Whether the application filed by SIDBI under Section 7 of the IBC for initiating CIRP against …

**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 loan agreements, repayment schedules, and the acknowledgments of

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

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**Application:** The court applied Section 7 to the facts, finding that SIDBI had demonstrated a

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## Parties

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

## Timeline

- **1990-04-02 — SIDBI Estab…**: Small Industries Development Bank of India (SIDBI) was established under an Act of Indian…
- **2015-11-18 — Letter of Inte…**: SIDBI issued a letter of intent to…

## 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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