# In the matter of Avaneesh Infratech Private Limited

> NCLT judgment dated 2023-12-12. Citation: TCN-2023-NCLT-00295. South North Projects LLP filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 12 Dec 2023
- **Citation:** TCN-2023-NCLT-00295
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/avaneesh-infratech-private-limited-8f267205

## Summary

### Background

South North Projects LLP filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Avaneesh Infratech Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The financial creditor claimed a default of Rs. 7,45,16,254/-, with the date of default being March 17, 2023. The corporate debtor was incorporated on March 13, 2014. The financial creditor had agreed to provide a business loan/investment of Rs. 1.5 Crore to the corporate debtor between February 25, 2016, and March 1, 2016, with a verbal agreement for repayment of Rs. 2.5 Crore by February 15, 2017. The corporate debtor also mortgaged properties through M/s 7 Senses Infrastructure Pvt. Ltd. as security. The corporate debtor made part payments, but

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## Facts

South North Projects LLP (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Avaneesh Infratech Private Limited (Corporate Debtor). The Financial Creditor claimed a default of Rs. 7,45,16,254/-, with the date of default being March 17, 2023. The Corporate Debtor was incorporated on March 13, 2014. The Financial Creditor agreed to provide a business loan/investment of Rs. 1.5 Crore to the Corporate Debtor between February 25, 2016, and March 1, 2016, with a verbal agreement for repayment of Rs. 2.5 Crore by February 15, 2017. M/s 7 Senses Infrastructure Pvt. Ltd., a sister concern of the Corporate Debtor, provided a mortgage as security. The Corporate Debtor issued six postdated cheques for the settlement

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** Section 238(A) of the I&B Code, 2016, makes the Limitation Act, 1963 applicable to

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**Reasoning:** The court considered the various part payments made by the Corporate Debtor and the

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**Interpretation:** The court interpreted the provisions of the Limitation Act and the Supreme

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**Application:** The court applied the provisions of the Limitation Act and the Supreme Court's

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** South North…
- **Respondents:** Avaneesh Infratech…

## Timeline

- **2014-03-13 — Incorporation of…**: Avaneesh Infratech Private…
- **2016-02-25 — Agreement for…**: Financial Creditor agreed to provide a business loan/investment of Rs. 1.5 Crore to the…

## 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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