# In the matter of AS Infracon Private Limited

> NCLT judgment dated 2024-10-30. Citation: TCN-2024-NCLT-00319. The case involves a petition filed by Small Industries Development Bank of India (SIDBI) under…

- **Court:** NCLT
- **Order date:** 30 Oct 2024
- **Citation:** TCN-2024-NCLT-00319
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/as-infracon-private-limited-d5c792ef

## Summary

### Background

The case involves a petition filed by Small Industries Development Bank of India (SIDBI) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against As Infracon Private Limited, the Corporate Debtor. The Financial Creditor had sanctioned credit facilities to Kosas Exports Limited (“Principal Borrower”), with As Infracon Private Limited acting as the Corporate Guarantor. The Corporate Debtor failed to appear before the Adjudicating Authority despite service of notice. The Financial Creditor invoked the guarantee on 27 July 2016, demanding payment of Rs 7,28,75,463. The petition was filed on 12 May 2023.

## Facts

Small Industries Development Bank of India (SIDBI) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against As Infracon Private Limited. As Infracon Private Limited acted as a corporate guarantor for credit facilities extended by SIDBI to Kosas Exports Limited (“Principal Borrower”). SIDBI sanctioned an aggregate amount of Rs 7,00,00,000/- to the Principal Borrower. The Corporate Debtor was incorporated on 17 August 1998. The Financial Creditor invoked the guarantee on 27 July 2016, demanding payment of Rs 7,28,75,463. The Corporate Debtor did not appear before the Adjudicating Authority despite service of notice. The Principal Borrower submitted OTS on 8th June 2019 and 5th

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## Issues and analysis

### Issue 1: Whether the present …

**Ratio:** The date of default for the purpose of limitation for the Corporate Debtor and Corporate

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**Reasoning:** The court considered the invocation of the guarantee on 27.07.2016 and the subsequent OTS

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**Interpretation:** The interpretation of Section 7 of the IBC, 2016, involves determining the date

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**Application:** The court applied the ratio to the facts of the case, considering the

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Small Industries…
- **Respondents:** As Infracon…

## Timeline

- **1998-08-17 — Incorporation of…**: As Infracon Private…
- **2014-02-26 — Guarantee Ag…**: Guarantee Agreement dated 26 February 2014 executed by the Corporate Debtor in favour of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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