# In the matter of Ankit Metal & Power Limited

> NCLT judgment dated 2024-05-03. Citation: TCN-2024-NCLT-01438. Assets Care & Reconstruction Enterprise Limited filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 3 May 2024
- **Citation:** TCN-2024-NCLT-01438
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ankit-metal-power-limited-0fc66788

## Summary

### Background

Assets Care & Reconstruction Enterprise Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ankit Metal & Power Limited, the Corporate Debtor. 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 total amount of Rs. 22,13,81,08,600/- due from the Corporate Debtor, with defaults dating back to 2014 and 2016. The Corporate Debtor had obtained financial assistance from various banks, including IDBI Bank, Indian Overseas Bank, State Bank of India, and Allahabad Bank, and had entered into restructuring agreements. The Corporate Debtor's account was

…

## Facts

An application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Assets Care & Reconstruction Enterprise Limited (Financial Creditor) to initiate Corporate Insolvency Resolution Process (CIRP) against Ankit Metal & Power Limited (Corporate Debtor). The Corporate Debtor is a private limited company incorporated on 07.08.2022. The authorized share-capital of the company is ₹1,41,20,00,000/- and the paid-up share capital of the company is ₹1,41,11,05,000/-. The total amount claimed to be in due to the Operational Creditor, is Rs. 22,13,81,08,600/-. The dates of default mentioned in the petition are 29.08.2014, 30.09.2014 and 30.09.2016. The Corporate Debtor is engaged in the business of iron and steel including manufacturing of sponge iron,

…

## Issues and analysis

### Issue 1: Whether the Petitioner is a Financial Creditor …

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

…

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

…

**Interpretation:** Section 5(7) of the IBC 2016 defines the term‘'financial creditor' is defined

…

**Application:** The court held that the transfer of the debt of the Corporate Debtor to the

…

## Parties

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

## Timeline

- **2007-09-14 — Working Capital…**: Working Capital Consortium Agreement dated September 14, 2007 was executed between the…
- **2008-08-11 — Facility Agreement with…**: IDBI Bank Limited (IDBI Bank') vide Facility Agreement dated August 11, 2008 for availing…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ankit-metal-power-limited-0fc66788