# In the matter of Aqua Electronics & Solutions Private Limited

> NCLT judgment dated 2024-04-01. Citation: TCN-2024-NCLT-01906. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 1 Apr 2024
- **Citation:** TCN-2024-NCLT-01906
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aqua-electronics-solutions-private-limited-d62fa8e2

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 by Savitur Infrastructure Private Limited (Financial Creditor) against Aqua Electronics & Solutions Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP) due to default in repayment of debt. The debt arises from Optionally Convertible Debentures (OCDs) issued by Parivartan Buildcon Private Limited, for which Aqua Electronics & Solutions Private Limited provided a corporate guarantee. The financial creditor invoked the corporate guarantee after Parivartan Buildcon Private Limited defaulted on its repayment obligations. The application is related to a prior case, CP(IB)-127/ND/2024.

## Facts

Savitur Infrastructure Private Limited (SIPL), the Financial Creditor, invested Rs. 5,36,51,000 in Optionally Convertible Debentures (OCDs) of Parivartan Buildcon Private Limited. These OCDs were redeemable on demand. Parivartan Buildcon Private Limited defaulted on the redemption of these OCDs. Aqua Electronics & Solutions Private Limited provided a corporate guarantee for the redemption of these OCDs. Due to Parivartan's default, Savitur Infrastructure Private Limited invoked the corporate guarantee on 01.12.2023, demanding payment from Aqua Electronics & Solutions Private Limited. Aqua Electronics & Solutions Private Limited failed to make the payment. The date of default was 31.07.2023. The total amount claimed to be in default is Rs. 5,94,45,308.00,

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the IBC, 2016 is complete and meets the …

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate CIRP against a

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**Reasoning:** The court examined the application and found that it included the necessary details

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**Interpretation:** Section 7 of the IBC, 2016 provides the framework for initiating CIRP,

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**Application:** The court applied the provisions of Section 7 to the facts of the case and

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** Savitur Infrastruc…
- **Respondents:** Aqua Electronics…

## Timeline

- **2016-05-19 — Debt Disbur…**: The amount of debt was disbursed as an…
- **2018-01-01 — Offer for…**: The Principal Borrower made an offer to the Financial Creditor to subscribe to its…

## 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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