# In the matter of Ankit Metal & Power Limited

> NCLT judgment dated 2024-05-03. Citation: TCN-2024-NCLT-01453. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 3 May 2024
- **Citation:** TCN-2024-NCLT-01453
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ankit-metal-power-limited-0e52ee90

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Assets Care & Reconstruction Enterprise Limited (Financial Creditor) against Ankit Metal & Power Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is a private limited company incorporated on 07.08.2022 with a substantial authorized and paid-up share capital. The Financial Creditor claims a default amount of Rs. 22,13,81,08,600/-. The Corporate Debtor had availed financial assistance from multiple banks, including IDBI Bank, Indian Overseas Bank (IOB), State Bank of India (SBI), and Allahabad Bank, through various agreements. The Corporate Debtor defaulted on payments, leading to its account being

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## Facts

Ankit Metal & Power Limited (Corporate Debtor) is a private limited company engaged in the business of iron and steel. It obtained financial assistance from IDBI Bank, Indian Overseas Bank (IOB), State Bank of India (SBI), and Allahabad Bank. A Working Capital Consortium Agreement dated September 14, 2007, was executed between the Corporate Debtor and SBI, Andhra Bank, Syndicate Bank, and IDBI Bank for Rs. 3790 Lakhs. IDBI Bank Limited provided a working capital facility of Rs. 20,00,00,000/- vide Facility Agreement dated August 11, 2008. Indian Overseal Bank (IOB) issued a sanction letter dated January 14, 2012. A Master Restructuring Agreement dated September 25, 2014, and a Working Capital Consortium Agreement dated December 9, 2014, were executed for availing

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## Issues and analysis

### Issue 1: Whether the ARC falls within the definition of …

**Ratio:** An ARC can acquire financial assets of any bank or financial institution by entering into

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**Reasoning:** The court relied on the order passed by the Hon'ble National Company Law Appellate

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**Interpretation:** The assignee ARC is a Financial Creditor and is therefore competent to maintain

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**Application:** The transfer of the debt of the Corporate Debtor to the Petitioner herein by

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Respondents:** Ankit Metal and…; Ankit Metal &…

## Timeline

- **2007-09-14 — Working Capital…**: Working Capital Consortium Agreement executed between the Corporate Debtor and SBI,…
- **2008-08-11 — Facility Ag…**: IDBI Bank Limited provided a working…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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