# In the matter of AMW Commercial Vehicle Applications Limited C.P. No. 117-IBC-MB-2021

> NCLT judgment dated 2022-07-11. Citation: TCN-2022-NCLT-01776. SREI Equipment Finance Limited filed a Company Petition seeking to initiate Corporate…

- **Court:** NCLT
- **Order date:** 11 Jul 2022
- **Citation:** TCN-2022-NCLT-01776
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amw-commercial-vehicle-applications-limited-cp-no-117-ibc-mb-2021-502ab484

## Summary

### Background

SREI Equipment Finance Limited filed a Company Petition seeking to initiate Corporate Insolvency Resolution Process (CIRP) against AMW Commercial Vehicle Applications Limited. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency & Bankruptcy (Application to Adjudication Authority) Rules, 2016, for an unresolved financial debt of Rs. 292,79,60,204 as of 30.09.2020. The petitioner and the corporate debtor entered into 4 Loan Agreements wherein the Corporate Debtor borrowed loans on terms and conditions. The dates of disbursement for the Term Loan Facility granted of Rs. 16621,00,000 are provided.

## Facts

SREI Equipment Finance Limited (the Petitioner) filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against AMW Commercial Vehicle Applications Limited (the Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was based on an unresolved financial debt of Rs. 292,79,60,204 as of 30.09.2020. The Petitioner and the Corporate Debtor had entered into four loan agreements, with a total disbursement of Rs. 16621,00,000. The Petitioner provided documents including loan agreements, pledge agreements, mortgage deeds, personal guarantees, hypothecation deeds, corporate guarantees, charge registration certificates, rupee loan agreements, a CIBIL report, and statements of accounts. A demand notice was issued to the

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by SREI Equipment Finance Limited under Section 7 of the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court observed that the petitioner, SREI Equipment Finance Limited, had filed the

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The court found that the petitioner had presented sufficient evidence,

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## Parties

- **Judges:** ANURADHA SANJAY…; H.V. Subb…
- **Appellants:** SREI Equipment…
- **Respondents:** AMW Commercial…

## Timeline

- **2020-09-30 — Outstanding Financial…**: The outstanding financial…
- **2020-10-19 — Demand Notice…**: The Petitioner issued a demand notice to the Corporate Debtor to clear the outstanding…

## 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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